Question

A sum of ₹5000 yields an interest of ₹500 compounded annually. On what amount will the
interest for the second year be calculated.​

Answer 1

Answer:

P=5000rs

CI1=SI1=500rs

SI1=PTR/100

R=SI×100/PT

=500×100/5000×1

=10%

CI2=CI1+10%(500)=500+50=550rs

A=P+I

=5000+500=5500rs