Question

Find the amount P = Rs 10000, R = 5% p.a and T = 5 years​

Answer 1

Answer:

Solution: Principal for the first year = Rs. 10000

Interest for the first year =

Rs \dfrac{10000 \times 5 \times 1}{100} = Rs. 500

[We are using the formula

S.I.=\dfrac{P \times R \times T}{100} ]

\therefore amount at the end of first year = Rs 10000 + Rs. 500 = Rs. 10500

Interest for the second year =

\dfrac{10500 \times 5 \times 1}{100} = Rs. 525

Principal of the second year was Rs. 10500 and so amount at the end of the second year = Rs. 10500 + Rs. 525 = Rs. 11025

So, Compound interest= Rs. (11025 – 10000) = Rs. 1025

Note: The C.I. can also be found by adding the interest for each year.