Question

What is the amount we get on Rs 2500 for 2 years at 10% per annum componded annually?
(1 Point)
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Answer 1

Given,

The principal amount = Rs. 2500

Total time = 2 years

Rate of interest = 10% p.a

To find,

The amount that we get for the compound interest with the given amounts.

Solution,

Now, we will assume that the amount refers to the sum of the principal amount and the total compound interest.

We can easily calculate the amount, by the following mathematical formula.

Amount = P × (1+r/100)^n

(Here, P = principal amount , r = rate , n = number of years)

Amount = 2500 ×(1 + 10/100)²

= 2500 × (1+1/10)²

= 2500 × (11/10)²

= 2500 × 121/100

= 25 × 121

= Rs. 3025

Hence, the amount will be Rs. 3025