Question

find the amount and the compound interest on rupees 10000 for 2 years at 5% per annum compounded annually​

Answer 1

Compound interest:

`a = p( 1 + (r)/(n) ) { }^(nt)`

a = final amount

p = principal amount

r = rate of interest

t = time

n = no. of compounding periods per year

p = 10000

r = 5% = 5/100 = 0.05

t = 2

n = 1

`a = 10000(1 + (0.05)/(1) ) {}^(2 * 1)`

`a = 10000(1 + 0.05) {}^(2)`

`a = 10000(1.05) {}^(2)`

`a = 10000(1.1025)`

`a = 11025`