Question

Find the compound interest on Rs. 500 for 2 years at 10 % p.a.​

Answer 1

Step-by-step explanation:

I have done this question from another concept but the answer is correct.

Answer 2

Given :

• Principal (P) = Rs 500
• Rate (R) = 10% p.a
• Time (n) = 2 years

To Find :

• Compound interest

Formulas :

✰ A = P × [ 1 + R / 100 ]^n

✰ C.I = A - P

Where

• A = Amount
• P = Principal
• R = Rate
• n = Time
• C.I = Compound Interest

Solution :

➟ Amount = Principal × [ 1 + Rate / 100 ]^n

➟ Amount = 500 × [ 1 + 10 / 100 ]²

➟ Amount = 500 × [ 110/100 ]²

➟ Amount = 500 × 110/100 × 110/100

➟ Amount = 5 × 110 × 110 / 100

➟ Amount = 550 × 110 / 100

➟ Amount = 60,500 / 100

➟ Amount = Rs 605

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⟹ Compound Interest = A - P

⟹ Compound Interest = 605 - 500

⟹ Compound Interest = Rs 105

Thus Compound Interest is Rs 105

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