Question

find the amount and compound interest on 5000 rupees for 2 years at 10%, interest being payable yearly

Answer 1

Solution.    Here, P= Rs 5000, R = 10%, n = 2 years

            Using the formula, A (Amount) = P  (1+R100)n, we have

Therefore,    A = Rs 5000  (1+10100)2

                          = Rs 5000 x 110100 x 110100 
                          = Rs 6050
Therefore, Compound Interest = A – P = Rs 6050 – Rs 5000 = Rs 1050.

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