Question

Find the compound interest for 2 years at 10% interest on Rs.12,600

annually

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Answer 1

Step-by-step explanation:

The compound interest of the principal of Rs.12600 that at a rate of 10% is Rs. 2646.

Solution:

Given:

The amount which is used for compound interest is Rs.12600

Time taken for the compound interest is 2 years

The rate (R) at which the amount is compounded annually is 10%

Hence to find the compound interest we use  the formula

P = \bold{A\left(R+\frac{1}{100}\right)^{2}} = 12600\left(10+\frac{1}{100}\right)^{2}=12600\left(\frac{110}{100}\right)^{2}= R s .15246P=A(R+1001)2=12600(10+1001)2=12600(100110)2=Rs.15246

Rs.15246 is the principal of the amount Rs. 12600, therefore the Compound Interest  is Rs. 15246 – 12600 = Rs. 2646.