Question

Find CI on Rs 12600 for 2 year at 10% per annum compounded annually.

Answer 1

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P=A(r+1/100)^2

=12600(10+1/100)^2

=12600*110/100*10/100

=15246

CI =P-A

=15246-12600

=rs2646 .

Answer 2

A=P×[1+r/100]^n

=12600×[1+10/100]^2

=12600×110/100×110/100

=15246

C.I =15246-12600= 2646

so CI =2646

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