Question

Find the amount on ₹25500 at 5% p.a. for 2 years compounded annually.

Answer 1

Answer:

Present value=₹2500

Interest rate=10% per annum

Time=2 years

To find the amount we have the formula,

Amount(A)=P(1+(R/100))

n

where P is present value, r is rate of interest, n is time in years.

Now substituting the values in above formula we get,

∴A=2500(1+10/100)

2

⇒A=2500(11/10)

2

⇒A=2500(121/100)

⇒A=25(121)

⇒A=₹3025

Now,

∴ Compound interest = A–P

=3025–2500=₹525

Answer 2

Answer:

Step-by-step explanation:

Principle = p = 25,500

Rate of interest = 5% i.e. 0.05%

Time = 2 yrs

$\bold{\boxed{Amt = p(1+i)^n}}$

$Amt = 25,500(1+0.05)^2$

$Amt = 25,500(1.05)^2$

$Amt = 25,500(1.1025)$

$Amt = 28,113.75$

CI = 28,113.75 - 25,500 = 2,613,75