Question

Find Compound interest
P=₹7850,R=10% per year,T=2years​

Answer 1

Interest for 1st year,

Principal = ₹7850

Rate = 10% per annum

Time = 1years

I = PRT/100

⟹ I = 7850 × 10 × 1/100

⟹ I = Rs. 785

Therefore,

• Amount at the end of the 1st year = Rs. 7850+785 = Rs. 8635
• Principal for the 2nd year is Rs. 8635

Interest for the 2nd year,

Principal = Rs. 8635

Rate = 10%

Time = 1years

I = PRT/100

⟹ I = 8635 × 10 × 1/100

⟹ I = Rs. 863.5

So, final amount will become

Rs. 8635 - 863.5 = Rs. 9498.5

Hence, Compound Interest is

C.I = (Final amount) - (Original principal)

C.I = Rs. 9498.5 - 7850

C.I = Rs. 1648.5 (Required Answer)

$________________________$

We can also find the Compound Interest directly by formula.

$\sf\bf{\large{\pink{\star \: \: {\boxed{\sf \:A = P \bigg(1+\frac{R}{100}\bigg)^n} \: \: \star}}}}$

$\sf\implies{A = 7850 \bigg(1 + \frac{10}{100}\bigg)^2}$

$\sf\implies{A = 7850 \times \bigg( \frac{11}{10} \bigg)^2}$

$\sf\implies{A = \cancel\frac{18997}{2}}$

$\sf\implies{A=₹9498.5}$

Therefore, Amount is Rs. 9498.5

Hence,

C.I = (Final amount) - (Original principal)

C.I = Rs. 9498.5 - 7850

C.I = Rs. 1648.5 (Required Answer)