Question

Calculate the interest earned and the amount due 12600 for 2 years at 12% p.a if the interest is compounded

Answer 1

$\sf{\underline{\boxed{\large{\blue{\mathsf{Solution}}}}}}$

$\sf{\bold{\green{\underline{\underline{Given}}}}}$

• Principle = Rs. 12600
• Rate = 12%
• time = 2 years

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$\sf{\bold{\green{\underline{\underline{To\:Find}}}}}$

• Compound interest = ???

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$\sf{\bold{\green{\underline{\underline{Solution}}}}}$

$\sf{\red{\boxed{\bold{amount = p ( 1 +\dfrac{r}{100} )^t}}}}$

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: $\sf\implies \: {\bold{ Amount = 12600 ( 1 + \dfrac{12}{100})^2}}$

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: $\sf\implies \: {\bold{ Amount = 12600 ( \dfrac{100 + 12 }{100})^2}}$

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: $\sf\implies \: {\bold{ Amount = 12600 ( \dfrac{112}{100})^2}}$

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: $\sf\implies \: {\bold{ Amount = 12600 ( \dfrac{112}{100} \times \dfrac{112}{100})}}$

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: $\sf\implies \: {\bold{ Amount = 1260( \dfrac{112\times 100}{112\times 10})}}$

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: $\sf\implies \: {\bold{ Amount = 126( \dfrac{112\times 112}{100})}}$

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: $\sf\implies \: {\bold{ Amount = 126( \dfrac{112\times 112}{100})}}$

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: $\sf\implies \: {\bold{ Amount = \dfrac { 126 \times 112544}{100}}}$

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:$\sf\implies\: {\bold{ Amount = \dfrac{1580544}{100}}}$

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: $\sf\implies \: {\bold{ Amount = Rs.15805.44}}$

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$\sf{\pink{\boxed{\bold{\dag Amount = Rs. 15805.44}}}}$

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$\sf{\red{\boxed{\bold{CI = Amount - Interest}}}}$

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: $\sf\implies \: {\bold{ CI = Rs. 15805.44 - Rs.12600}}$

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: $\sf\implies \: {\bold{ CI = Rs.3205.44}}$

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$\sf{\pink{\boxed{\bold{CI = Rs. 3205.44}}}}$

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$\sf{\bold{\green{\underline{\underline{Answer}}}}}$

• Rs. 12600 will earn Rs. 3205.44 as interest and will amount to Rs. 15805.44 in 2 years at 12% p.a.