Question

the compound interest when principal=₹10,000,rate=12% p.a., number of years=2 is

Answer 1

Given P = 10000, R = 12%, n = 2.

We know that A = P(1 + r/100)^n

= > 10000(1 + 12/100)^2

= > 10000(112/100)^2

= > 10000(1.12)^2

= > 10000(1.2544)

= > 12544.

We know that CI = A - P

                            = 12544 - 10000

                            = 2544.

Hope this helps!

Answer 2

In case of compound interest,
Amount = P(1+r/100)^n [ for number of years ]
=> Amount/ Principal = (112/100)^2
=> Amount/ Principal = 12544/10000

In order to find the compound interest, use the formula:

Compound interest = Amount - Principal

=> Compound interest = 12544-10000= 2544 rupees.

I hope this answers your question sufficiently. Happy learning.