Question

Find the compound interest on rs. 5000for 2years and rate p.a. is 10%

Answer 1

Answer

$p = 5000 \\ n = 2yrs \\ r = 10\%p.a \\ a = p(1 + \frac{r}{100}) {}^{n} \\ a = 5000(1 + \frac{10}{100} ) {}^{2} \\ a = 5000(1.1) {}^{2} \\ a = 5000 \times 1.1 \times 1.1 \\ a = rs.6050 \\ compound \: interest = a - p \\ 6050 - 5000 \\ ci = rs.1050$