Question

calculate the amount of the compound interest on rupees 12 000 in 2 years and at the rate off 10% per year

Answer 1

P = Rs 12000
R = 10%
T = 2years [ 1 + 1]
CI = ??

I = PRT/100
  = 12000 * 10 * 1 / 100
  = Rs 1200

P2 = 12000 + 1200
     = Rs 13200

I2 = P2RT/100
    = 13200 * 10 * 1 / 100
    = Rs 1320

CI = I + I2
     = 1200 + 1320
     = Rs 2520

Answer = Compound Interest = Rs 2520

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Answer 2

Compound interest =p(1+r/100)^n-p Substitute p=12000 . r=10 . n=2 12000(1+10/100)^2-12000 12000(11/10)^2-12000 120❌ 121-12000 2520 Therefore the compound interest is 2520