Question

find the amount and compound interest annually each of the following case principal 25000 rate 10% time two years​

Answer 1

Given:-

• $\sf{Principal\: (P) = Rs.25000}$
• $\sf{Rate\:(R) = 10\%\:p.a.}$
• $\sf{Time\:(t) = 2 years}$

To find:-

• Compound Interest
• Amount

Solution:-

We know,

$\sf{A = P{\bigg(1 + \dfrac{r}{100}\bigg)}^{t}}$

= $\sf{A = 25000{\bigg(1 + \dfrac{10}{100}\bigg)}^{2}}$

= $\sf{A = 25000{\bigg(1 + \dfrac{1}{10}\bigg)}^{2}}$

= $\sf{A = 25000{\bigg(\dfrac{10 + 1 }{10}\bigg)}^{2}}$

= $\sf{A = 25000{\bigg( \dfrac{11}{10}\bigg)}^{2}}$

= $\sf{A = 25000 \times \dfrac{11}{10}\times \dfrac{11}{10}}$

= $\sf{A = Rs.30250}$

$\sf{\therefore The\:Amount\:is\:Rs.30250}$

Now,

$\sf{CI = Amount - Principal}$

= $\sf{CI = Rs.(30250 - 25000)}$

= $\sf{CI = Rs. 5250}$

$\sf{\therefore The\:CI\:is\:Rs.5250}$

From the solution:-

• P = Principal
• R = Rate
• t = Time
• CI = Compound Interest
• A = Amount