Question

calculate compund interest on ₹ 10000 for 2 years at 10 ℅ pa when is period compound annually
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Answer 1

Answer:

Present value =₹ 10000

Interest rate =10% per annum

Time =3 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=10000(1+10/100)  

3

 

⇒A=10000(11/10)  

3

 

⇒A=121(10)(11)

⇒A=1331(10)

⇒A=₹ 13310

∴ Compound interest =A–P

=13310–10000=₹ 3310

Step-by-step explanation: