Question

Find compound interest on rupees 12600 for 2 years at 10% per annum compounded annually ?

Answer 1

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

The compound interest of the principal of Rs.12600 that at a rate of 10% is Rs. 2646.

Solution:

Given:

The amount which is used for compound interest is Rs.12600

Time taken for the compound interest is 2 years

The rate (R) at which the amount is compounded annually is 10%

Hence to find the compound interest we use  the formula

$P = \bold{A\left(R+\frac{1}{100}\right)^{2}} = 12600\left(10+\frac{1}{100}\right)^{2}=12600\left(\frac{110}{100}\right)^{2}= R s .15246$

Rs.15246 is the principal of the amount Rs. 12600, therefore the Compound Interest  is Rs. 15246 – 12600 = Rs. 2646.