Question

7.The compound interest on Rs.500 at 10% p.a for 2 years

compounded annually is ​

Answer 1

Answer:

105

Step-by-step explanation:

I attached an image with solutions

Answer 2

Given,

Principal amount (P) = Rs. 500

Rate (R) = 10% per annum

Time (T) = 2 years

To find,

The compound interest on Rs.500 at 10% p.a for 2 years compounded annually.

Solution,

The compound interest on Rs.500 at 10% p.a for 2 years compounded annually will be Rs. 105.

We can easily solve this problem by following the given steps.

We know that the formula to find the compound interest annually is given as follows:

Compound interest = P(1+R/100)ⁿ -P where P is the principal amount, R is the Rate and n is the time in years

According to the question,

Principal amount (P) = Rs. 500

Rate (R) = 10% per annum

Time (T) = 2 years

So,

CI = 500(1+10/100)² -500

CI = 500(1+1/10)²-500

CI = 500(11/10)²-500

CI = (500×11×11)/10×10 - 500

CI = (5×11×11)-500

CI = 605-500

CI = Rs. 105

Hence, the compound interest on Rs.500 at 10% p.a for 2 years compounded annually is Rs. 105.