Question

Shankar takes a loan of rupees 10000 at compound interest of 10% per annum
(i)find the compound interest after one year
(ii)find the compound interest for second year
(iii)find the sum of money required to clear the debt at the end of second year
(iv)find the difference between the compound interest and the simple interest at the same rate for 2 years

Answer 1

Step-by-step explanation:

1. Compound interest after one year

= 10000 * 10/100

= 1000

2. Compound interest for 2 years

= 11000 * 10/100

= 1100

3. Sum of money required to clean the debt = 11000 + 1100

= 12100 rs