Question

Find the compound interest if ₹9
000 are invested for 2 years at the rate of 10 p.c.p.a.​

Answer 1

Solution:

Principal amount (P) = Rs.9000

Rate of interest (R) = 10%

Time period (T) = 2 years

Mode of compounding = Annually

In order to find the compound interest when the principal amount is compounded annually, we need to implement the formula given below:

$\sf{\implies\:A=P\left(1+\dfrac{R}{100}\right)^n}$

Applying the formulae into the equation:

$\sf{\longrightarrow\:A=9000\left(1+\dfrac{10}{100}\right)^2}$

$\sf{\longrightarrow\:A=9000\left(1+\dfrac{1}{10}\right)^2}$

$\sf{\longrightarrow\:A=9000\times\dfrac{11}{10}\times\dfrac{11}{10}}$

$\sf{\longrightarrow\:A=90\times11\times11}$

$\sf{\longrightarrow\:A=90\times121}$

$\sf{\longrightarrow\:A=10890}$

The total amount is Rs.10890.

Now, in order to find the C.I amount:

$\sf{\implies\:C.I=A-P}$

Applying the values into the formula:

$\sf{\longrightarrow\:C.I=10890-9000}$

$\sf{\longrightarrow\:C.I=1890}$

Therefore, the Compound interest amount is Rs.1890.

Answer 2

Step-by-step explanation:

A = p (1+r/100 ) ^n

= 9000 (1 + 10/100)^2

Vol 84

= 9000 (110/100) × (110/100)

= 10890

The total amount = 10890

The principle = 9000

The compound interest = amount - principle

= 10890 - 9000

(C.I) = 1890