Question

Find CI and amount in 2 methods (Yearly calculation method and Formula method)

P = ₹20000 ; T = 2years ; R = 12% compounded annually​​

Answer 1

Step-by-step explanation:

By formula,

interest=p×t×r/

or,20000×2×12/

interest=4800$

now,amount=si+p

=4800+20000

=24800$

Answer 2

Step-by-step explanation:

by formula

A = P (1 + r/100)^n

= 20000*(1.12)^2

= 20000*1.2544

= 25088

CI = A-P

= 25088-20000

= 5088

By yearly calculation

interest for first year

I = PTR/100

= 20000*1*12/100

= 2400

Now, principal for next year

= 20000 + 2400 = 22400

interest for second year

= 22400*1*12/100

=. 2688

total interest paid

= 2400 + 2688

= 5088

Amount= 22400 + 2688 or 20000 + 5088

= 25088