Question

9. Find the compound interest on 2500 for 2 years,
s/find the compound interest on ₹2500 for 2 years at 8% per annum.​

Answer 1

Answer:

ANSWER

Present value=₹2500

Interest rate=10% per annum

Time=2 years

To find the amount we have the formula,

Amount(A)=P(1+(R/100))

n

where P is present value, r is rate of interest, n is time in years.

Now substituting the values in above formula we get,

∴A=2500(1+10/100)

2

⇒A=2500(11/10)

2

⇒A=2500(121/100)

⇒A=25(121)

⇒A=₹3025

Now,

∴ Compound interest = A–P

=3025–2500=₹525