Question

Find the amount and the compound interest on ₹ 10,000 for two years at 5% per annum

compounded yearly​

Answer 1

Answer :-

• The amount is Rs. 11025.
• The Compound Interest is Rs. 1025.

Step-by-step explanation :

To Find :-

• The amount
• The compound interest

Solution :-

Given that,

• Principal = Rs. 10,000
• Time = 2 years
• Rate = 5%

According the question,

• The amount

As we know that,

Amount ( A ) = P × ( 1 + R/100 )ⁿ, therefore,

Where,

• P = Principal
• R = Rate
• ⁿ = Time

=> A = 10000 × ( 1 + 5/100 )²

=> A = 10000 × ( 1 + 1/20 )²

=> A = 10000 × ( 21/20 )²

=> A = 10000 × 21/20 × 21/20

=> A = 10000 × 441/400

=> A = 4410000/400

=> A = 11025

Hence, The amount is Rs. 11025.

Now,

• The Compound Interest

As we know that,

Compound interest = Amount - Principal,

=> Rs. 11025 - Rs. 10000

=> Rs. ( 11025 - 10000 )

=> Rs. 1025.

Hence, The Compound Interest is Rs. 1025.