Question

find the interest earned on 5000 for 2 years at 12% per annum compounded annually​

Answer 1

Answer:

1200

Step-by-step explanation:

Interest = 5000(12)(2)/100

= 1200

Answer 2

Answer:

The required compound interest is Rs. 1272.

Step-by-step-explanation:

We have given that,

For interest compounded annually,

Principle ( P ) = Rs. 5000

Rate of interest ( R ) = 12 %

Time period ( N ) = 2 years

We have to find the compound interest.

Now, we know that,

$\displaystyle{\pink{\sf\:Compound\:interest\:=\:Amount\:-\:Principle}}$

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

$\displaystyle{\implies\sf\:C\:.\:I.\:=\:P\:\left(\:1\:+\:\dfrac{R}{100}\:\right)^N\:-\:P}$

$\displaystyle{\implies\sf\:C\:.\:I.\:=\:5000\:\left(\:1\:+\:\cancel{\dfrac{12}{100}}\:\right)^2\:-\:5000}$

$\displaystyle{\implies\sf\:C\:.\:I.\:=\:5000\:\left(\:1\:+\:\dfrac{3}{25}\:\right)^2\:-\:5000}$

$\displaystyle{\implies\sf\:C\:.\:I.\:=\:5000\:\left(\:\dfrac{25\:+\:3}{25}\:\right)^2\:-\:5000}$

$\displaystyle{\implies\sf\:C\:.\:I.\:=\:5000\:\left(\:\dfrac{28}{25}\:\right)^2\:-\:5000}$

$\displaystyle{\implies\sf\:C\:.\:I.\:=\:\cancel{5000}\:\times\:\dfrac{28}{\cancel{25}}\:\times\:\dfrac{28}{25}\:-\:5000}$

$\displaystyle{\implies\sf\:C\:.\:I.\:=\:\cancel{200}\:\times\:28\:\times\:\dfrac{28}{\cancel{25}}\:-\:5000}$

$\displaystyle{\implies\sf\:C\:.\:I.\:=\:8\:\times\:28\:\times\:28\:-\:5000}$

$\displaystyle{\implies\sf\:C\:.\:I.\:=\:8\:\times\:784\:-\:5000}$

$\displaystyle{\implies\sf\:C\:.\:I.\:=\:6272\:-\:5000}$

$\displaystyle{\implies\sf\:C\:.\:I.\:=\:1272}$

$\displaystyle{\therefore\:\underline{\boxed{\red{\sf\:Compound\:interest\:=\:Rs\:.\:1272\:}}}}$

∴ The required compound interest is Rs. 1272.