Question

Reena borrowed 20,000 from a friend at the rate of 10% per annum for 2 years. Find the amount if it is compounded annually ​

Answer 1

Answer :

The amount is ₹24,200

Explanation :

Question says that,

Reena borrows ₹20,000 from her friend

for 2 years at the rate of 10% p. a. (per annum)

Find the amount if it's compounded annually.

We know that,

${ \underline{ \boxed{ \sf{Amount = p \bigg(1 + \frac{r}{100} \bigg) ^{n} }}}}$

Where,

• p denotes the principal i.e., ₹20,000
• r is the rate 10%
• n is the time 2 years.

So, the amount is :

$\sf \longrightarrow 20000 \bigg(1 + \frac{10}{100} \bigg)^{n}$

$\sf \longrightarrow 20000 \bigg(1 + \frac{1}{10} \bigg)^{2}$

$\sf \longrightarrow 20000 \bigg( \frac{11}{10} \bigg) ^{2}$

$\sf \longrightarrow 20000 \times \frac{11}{10} \times \frac{11}{10}$

$\sf \longrightarrow 20000 \times \frac{121}{100}$

$\sf \longrightarrow 200 \times 121$

$\sf \longrightarrow 24200$

Hence, the amount Reena will pay after 2 years is ₹24,200

Answer 2

Question:

Reena borrowed 20,000 from a friend at the rate of 10% per annum for 2 years. Find the amount if it is compounded annually

Formula used :

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

Solution :

Given that,

P=Rs.20,000

R=10%

T=2years

As compounded annually,

n=2.

Amount at the end of 2 years =P(1+R/100)^n

=20000(1+10/100)²

=20000×(110/100)²

= 20000×110/100×110/100

=Rs. 24200

Compound Interest (C.I) =24200−20000

=Rs 4200

So, the amount is 4,200