Question

The compound interest on 500 for 2 years at 10% p.a

Answer 1

Answer:

A

$= p {(1 + \frac{r}{100}) }^{n} \\ = 500 {(1 + \frac{10}{100}) }^{2} \\ = 500 {(1 + \frac{1}{10} )}^{2} \\ = 500( {\frac{11}{10}) }^{2} \\ = 500 \times \frac{11}{10} \times \frac{11}{10 } \\ = 5 \times 11 \times 11 \\ = 5 \times 121 \\ = 605$

$a = p + i \\ = > i = a - p \\ = > c.i. = 605 - 500 \\ = 105$