Question

Calculate the amount and compound interest on(a) Rs 10,000 for 2years at 25% per annum compounded annually
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Answer 1

Answer:

A principal of 10000 Rs. after 2 years compounded annually, the rate of interest being 10% per annum during the first year and 12% per annum during the second year will amount is : 11320 Rs.

Answer 2

Answer:

To Calculate the Compound intrest we use the given below formula

• Compound intrest = Amount - Principal

From the above given question :

• Principal (P) = Rs. 10,000
• Rate (r) = 25 %
• Time (n) = 2 years

To Find the amount we use the formula :

• $\sf A = P \bigg\lgroup 1 + \dfrac{r}{100}\bigg\rgroup^n$

Where,

• P = Principal
• r is rate
• n is period or time

Subsitute the given Parameters into the above given formula :

$=>\sf A = P \bigg\lgroup 1 + \dfrac{r}{100}\bigg\rgroup^n$

$=>\sf A = 10000 \bigg\lgroup 1 + \dfrac{25}{100}\bigg\rgroup^2$

$=>\sf A = 10000 \bigg\lgroup 1 + 0.025\bigg\rgroup^2$

$=>\sf A = 10000\bigg\lgroup 1.025\bigg\rgroup^2$

$=>\sf A = 10000\bigg\lgroup 1.050625\bigg\rgroup$

$=>\sf A = 10506.25$

The amount is 10506.25 rupees.

Since the amount is found we can now find the compound interest :

᠉ Compound intrest = Amount - Principal

᠉ Compound intrest = 10506.25 - 10000

᠉ Compound intrest = 10506.25 - 10000

᠉ Compound intrest = Rs.506.25

Therefore,the Compound intrest is Rs. 506.25.