Question

case of compound interest, the principal goes on Uhldig
years at 6% per annum.
Example 2. Calculate the compound interest on 12500 for 2 years at 6% per annum.​

Answer 1

Step-by-step explanation:

SI=

P×R×T

100

SIfor1styear=

1000×4×1

100

SIfor1styear=Rs40

Amount at the end of first year =Rs1000 + Rs 40 = Rs 1040. Principal for the second year = Rs1040

SIfor2ndyear=

1040×4×1

100

SIfor2ndyear=Rs41.60

Amount at the end of second year,

Amount=Rs1040+Rs41.60=Rs1081.60

Therefore,compound interest=₹(1081. 60-1000)