Question

What is the CI on a sum of Rs.10000 at 10% per annum for 2 years compounded annually?
Pls answer clearly and properly and quickly...

Answer 1

10,000(1+10÷100)2

100(11)2

100×11×2

2200

Answer 2

Given :-

P = ₹10,000

R = 10%

T = 2 years

To Find :-

The Compound Interest

Solution :-

$A\: =\: P\bigg(1\: +\: {\dfrac{r}{100}}\bigg)^{n}$

On inserting the values in the formula

We get ,

$A\: =\: 10000\bigg(1\: +\: {\dfrac{10}{100}}\bigg)^{2}$

$\implies\: A\: =\: 10000\bigg({\dfrac{100 + 10}{100}}\bigg)^{2}$

$\implies\: A\: =\: 10000\: \times\: {\dfrac{110}{100}}\: \times\: {\dfrac{110}{100}}$

=> A = 12,100

Compound Interest = Amount - Principal

= ₹12,100 - ₹10,000

= ₹2100

Therefore, the compound interest is ₹2100