Question

What would be the compound interest accrued on an amount of rs 9000 at the rate of 11 pcpa in two years?

Answer 1

Given Principal Amount= P= 9000

Rates of interest Per annum= i =11%

Time= n =2years

Compound Interest = P[ (1+i)^n - 1]

=9000[ (1+11/100)^2 - 1]

=9000[(1 + 0.11)^2 -1]

=9000[ (1.11)^2 - 1]

=9000[1.221 - 1]

=9000[0.221]

=1989 is the Compound Interest...

Then compounded Amount = Principal Amount + Compound Interest

=9000 + 1989 =10989 is the Compounded amount