Question

(b) Rs. 18,000 for 2 years at 10% per
annum compounded annually.​

Answer 1

Given:

P = 18000

n = 2 years

R = 10%

We know that:

A = P(1 + r/100)ⁿ

  = 18000(1 + 10/100)²

  = 18000(11/10)²

  = 18000 * 121/100

  = 21780

Now,

CI = A - P

   = 21780 - 18000

   = 3780