Question

Find the compound interest if rs.1000 are invested for 2 years at the rate of 10 p.c.p.a ​

Answer 1

Step-by-step explanation:

compound interest = 210

Answer 2

Answer:

Step-by-step explanation:

Compound interest is always occur on the principle amount, but only for 1st year

Afterwards it will occur on principle amount + compound interest and so on.

So, it derived a formula of amount occur after all years interest counted.

Amount = principle(1 + interest rate/100)² (for 2 years)

Given in the question-

Principle = 1000

Year = 2

Interest rate = 10%

Put these values in the formula we get amount

Amount = 1000(1 + 10/100)²

Amount = 1000 x 11/10 x 11/10

Amount = 1210

Compound interest = Amount - principle

Compound interest = 1210 - 1000

Compound interest = 210rs