Question

Find CIonRS 12600 for 2years at 10%per annum compounded annually

Answer 1

12600 × 10%=1260. First year
12600 × 10%=1260 + 126 ....2nd year
Then 1260 +1260+126 = 2646

Answer 2

Answer:

The compound interest is 2646.

Step-by-step explanation:

Principal = 12600

Rate of interest = 10%=0.1

Time 2 years

The formula for amount after CI is

$A=P(1+r)^t$

$A=12600(1+0.1)^2$

$A=12600(1.1)^2$

$A=15246$

Th compound interest is

$CI=A-P$

$CI=15246-12600=2646$

Therefore the compound interest is 2646.