Question

find C.I when P=10000 R=5% for two years​

Answer 1

Given :-

• Principal = Rs,10000
• Rate = 5%
• Time = 2 years

To Find :-

• Compound interest.

Solution :-

• Principal for 1st year = Rs,10000
• Rate = 5%
• Time = 1 year.

★ Interest for 1st year ★

⇒ Interest = Principal × Rate × Time ÷ 100

⇒ Interest = 10000 × 5 × 1 ÷ 100

⇒ Interest = 100 × 5

⇒ Interest for 1st year = Rs,500

________________

⇒ Amount = Principal + Interest

⇒ Amount = 10000 + 500

⇒ Amount = Rs,10500

________________

• Principal for 2nd year = Rs,10500
• Rate = 5%
• Time = 1 year

★ Interest for 2nd year ★

⇒ Interest = Principal × Rate × Time ÷ 100

⇒ Interest = 10500 × 5 × 1 ÷ 100

⇒ Interest = 105 × 5

⇒ Interest for 2nd year = Rs,525

________________

★ Compound Interest for 2 year ★

⇒ CI = Interest of 1st year + Interest of 2nd year

⇒ Compound Interest = 500 + 525

⇒ Compound Interest = Rs,1025

________________

Therefore, Compound Interest for 2 years is Rs,1025

________________