Question

What is the Compound Interest on Rs.2000 for 2years at 10% per Annum?

Answer 1

✬ C.I = Rs 420 ✬

Step-by-step explanation:

Given:

• Principal (P) is Rs 2000.
• Time (T) is 2 years.
• Rate (R) is 10% per annum.

To Find:

• What is the Compound Interest ?

Solution: First we have to find the amount.

★ Amount = P ( 1 + R/100)^n ★

• A = Amount
• P = Principal = Rs 2000
• R = Rate = 10 %
• T or n = Time = 2 years

$\implies{\rm }$ A = 2000 ( 1 + 10/100)²

$\implies{\rm }$ A = 2000 ( 110/100 )²

$\implies{\rm }$ A = 2000 ( 12100/10000 )

$\implies{\rm }$ A = 2000 $\times$ 121/100

$\implies{\rm }$ A = 20 $\times$ 121

$\implies{\rm }$ A = Rs 2420

Now, the formula for Compound Interest is

★ C.I = Amount – Principal ★

➱ C.I = Rs ( 2420 – 2000 ) = Rs 420

Hence, the Compound Interest after 2 years will be Rs 420.

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→ S.I = ( Principal x Rate x Time)/100

Answer 2

GIVEN:

• Principal (p) = Rs. 2000
• Time (t) = 2 years
• Rate (r) = 10%

TO FIND:

• What is the Compound Interest (C.I) ?

SOLUTION:

Firstly, we have to find the Amount (A).

We know that the formula for finding the Amount is:-

$\large\bf{\star \: A = P \Bigg( 1 + \dfrac{r}{100}\Bigg)^n\: \star}$

On putting the given values in the formula, we get

$\rm{\dashrightarrow A = 2000 \Bigg( 1 + \dfrac{10}{100}\Bigg)^2 }$

$\rm{\dashrightarrow A = 2000 \Bigg( \dfrac{100 + 10}{100}\Bigg)^2 }$

$\rm{\dashrightarrow A = 2000 \Bigg( \dfrac{110}{100}\Bigg)^2 }$

$\rm{\dashrightarrow A = 2000 \times \dfrac{12100}{10000} }$

$\rm{\dashrightarrow A = \cancel\dfrac{24200000}{10000} }$

$\bf{\dashrightarrow \star \: A = Rs. \: 2420 \: \star}$

To find the Compound Interest, we use the formula:-

$\bf{\star \: C.I = Amount - Principal \: \star}$

According to question:-

$\rm{\dashrightarrow C.I. = 2420 - 2000 }$

$\bf{\star \: C.I = Rs. \: 420\: \star}$

❝ Hence, the Compound Interest is Rs. 420 ❞

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