Question

1) By using the formula find the amount and compound interest on Rs. 10 000 for 2
years at 11% per annum compounded annually​

Answer 1

Answer :-

• Amount = Rs. 12,321
• Compound Interest = Rs. 2,321

Given :

• Principal = Rs. 10,000
• Time = 2 years
• Rate = 11 %

To find :

• Amount
• Compound Interest

Knowledge Required :-

→ Formula to calculate amount :-

• Amount = P[1 + r/100]ⁿ

where,

• P = Principal
• r = rate
• n = time

→ Formula to calculate compound interest :-

• Compound Interest = Amount – Principal

Solution :

Amount :-

→ Amount = P[1 + r/100]ⁿ

→ Amount = 10,000[1 + 11/100]²

→ Amount = 10,000[(100 + 11)/100]²

→ Amount = 10,000[111/100]²

→ Amount = 10,000 × 111/100 × 111/100

→ Amount = 111 × 111

→ Amount = Rs. 12,321

Compound Interest :-

→ Compound Interest = Amount – Principal

→ Compound Interest = Rs. 12,321 - Rs. 10,000

→ Compound Interest = Rs. 2,321