Question

Find the amount and the compound interest on rs 24000 for 2 years at 10 percent per annum compounded yearly

Answer 1

Answer:

C.I = p(1+r/100)n_]

This is the formula

Answer 2

Answer:

Interest= Rs.5,040  Amount= Rs.29,040

Step-by-step explanation:

Principal: Rs.24,000

Rate: 10%

Time: 2 years

For 1st year:

Principal: Rs. 24,000

Rate: 10%

Time: 1 year (Since compounded yearly)

Formula: I= P x R x T/ 100

I= 24,000 x 10 x 1/ 100

I= Rs. 2,400

Amount= P+I

Amount: =Rs.24,000+2,400

              =Rs. 26,400   (This amount will be the Principal for the next year)

For 2nd year:

Principal: Rs. 26,400

Rate: 10%

Time: 1 year

Formula: I= P x R x T/100

I= 26,400 x 10 x 1/ 100

I= Rs.2,640

Amount=  Rs. 26,400+Rs.2,640

             =Rs.29,040

Total Compounded Interest= Rs.2,400+Rs.2,640

                                              =Rs.5,040

(Formulae are in bold)