Question

Find the amount on a sum of 2000, for two years when the interest is compounded annually at 10%
per annum​

Answer 1

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• Find the amount on a sum of 2000, for two years when the interest is compounded annually at 10% per annum.

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Given:-

$\sf{ \rightarrow{Principle \: amount \: P= 2000}}$

$\sf{ \rightarrow{Time \: t = 2 \: years}}$

$\sf{ \rightarrow{Rate \: of \: interest \: r = 10\% = \frac{10}{100} = 0.01}}$

To find:-

$\sf{ \rightarrow{Total \: amount \: A = ?}}$

Solution:-

We know that,

$\boxed{ \sf{ \blue{Total \: amount \: A= P{(1 + r)}^{t}}}}$

Where,

• A stands for Total Amount
• P stands for Principle Amount
• r stands for Rate of interest
• t stands for number of time

According to the question,

$\sf{ \bold{Total \: amount \: A}} = 2000{(1 + 0.1 ) }^{2}\\ \\ \\ \sf{ \rightarrow{ \bold{Total \: amount \: A }}}= 2000 {(1.1)}^{2} \\ \\ \\ \sf{ \rightarrow { \bold{Total \: amount \: A}}} = 2000 \times 1.21 \\ \\ \\ \sf{ \rightarrow { \bold{Total \: amount \: A}}} = \orange{2420}$

$\underline{ \boxed{ \rm{ \star{Hence, \: the \: amount \: is \: 2420}}}}$

More Information:-

$\sf{ \bold{Simple \: interest \: I }}= \blue{Prt}$

$\sf{ \bold{Compound \: interest \: C}} = \blue{P(1 + r) {}^{t} - P}$

❖ Hope this helps you!!