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Question

Find CI on Rs. 12600 for 2 years at 10% per annum compounded annually.

Solution
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We have,
A=P(1+R100)n

Here, P=Rs.12600,R=10,n=2
Therefore,
A=12600(1+10100)2=12600(1110)2

=12600×1110×1110=Rs.15246

CI=AP=Rs.15246Rs.12600=Rs.2646

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