Question

find the amount and the compound interest on rupees 2500 for 2 years at 10% per annum compounded annually

Answer 1

A=p(1+r/100)to the power n

2500(1+10/100)2

2500(110/100)2

2500*(11/10)2

2500*11/10*11/10

3025 =amount

Answer 2

Given .

Principal amount = P=2500

Duration/Time = n = 2 years

Rate of Interest Per annum= i = 10%

Required to find is A = compound Interest

we know That..

For compound Interest...

A=P(1+i)^n-P

substituting above information..

A = 2500(1+10/100)^2 -2500

A= 2500(1+0.1)^2 - 2500

A= 2500(1.1)^2 - 2500

A = 2500(1.21) - 2500

A= 3025 - 2500

A= 525

so the compound Interest= 525

compounded amount = Principal amount + compound interest

= 2500+525 = 3025