Question

Calculate the amount and compound interest on

(i) Rs 15000 for 2 years at 10% per annum compounded annually.

Answer 1

Given

Principal (P) = Rs 15000

Rate (R) = 10% p.a.

Period (n) = 2 years

Hence,

Amount (A) = P {1 + (R / 100)}$$^n$$

= Rs 15000 {1 + (10 / 100)}$$^2$$

On further calculation, we get,

= Rs 15000 × (11 / 10) × (11 / 10)

We get,

= Rs 18150

Therefore,

Compound interest = Amount – Principal

= Rs 18150 – 15000

We get,

= Rs 3150