Question

Calculate the compound interest on ₹18000 at 10 percent per annum in two years

Answer 1

GivEn:

• Principal Value (p) = ₹18000
• Rate (r) = 10%
• Time (t) = 2 years

Formula Used:

Amount = P(1 + r/100)ⁿ

where as;

• A - Amount
• n = time
• p = principal Value
• r - rate

Step By step:

A = p(1 + r/100)ⁿ

A = 18000 (1 + 10/100)²

A = 18000 ( 11/10)²

A = 18000 × 11/10 × 11/10

A = 180 × 11 × 11

A = 180 × 121

A = ₹ 21780

For Compound Interest,

• CI = Amount - Principal Value

After putting the values;

CI = ₹ 21780 - ₹ 18000

CI = ₹ 3780

Hope it will be helpful :)

Answer 2

Required Answer:-

We have:

An amount compounded annually at a certain rate of interest and within a certain period of time$.$

Here:

• Principal (P) = Rs.18000
• Rate of interest (R) = 10%
• Time (n) = 2

According to the formula

→ Amount = P(1 + R/100)ⁿ

→ A = 18000(1 + 10/100)ⁿ

→ A = 18000(100 + 10/100)²

→ A = 18000 × (110/100)²

→ A = 18000 × 11/10 × 11/10

→ A = 180 × 11 × 11

→ A = Rs. 21780

Now subtracting Principal from amount to get the extra compound interest: Rs. 21780 - Rs. 18000 = Rs. 3780

Hence:-

The compound interest for the given principal, rate of interest and time period is Rs. 3780.

Note:-

• Don't forget to subtract the principal from amount if question is asking for compound interest.