Question

Shankar takes a loan of Rs. 10,000 at a compound interest rate of 10% per annum (p.a.). I. Find the compound interest after one year.​

Answer 1

Answer:

1st year intrest is 1000 rupees. Sum of money required to clean the debt at the end of 2nd year. Price is 12100

Answer 2

Given:-

Principal ($P$) = $Rs. 10, 000$

Rate of Interest ($R$)= $10%$%

No. of years ($n$) = 1 year

To find:-

Compound Interest after one year

Solution:-

Amount = $P (1 + \frac{R}{100})^{n}$

Amount = $10000 (1 + \frac{10}{100})^{1}$

Amount = $10000 (1 + \frac{1}{10})$

Amount = $10000 (\frac{10+1}{10})$

Amount = $10000 (\frac{11}{10})$

Amount = $1000 (11)$

Amount = $Rs. 11000$

Compound Interest = Amount - Principal

Compound Interest = $11, 000 - 10, 000$

Compound Interest = $Rs. 1,000$

∴ The compound interest after one year will be $Rs. 1, 000$.