Find the CI of Rs 12,600 for 2 years at 10% per annum compounded annually.[[1]].

see full answer

Your Exam Success, Personally Taken Care Of

1:1 expert mentors customize learning to your strength and weaknesses – so you score higher in school , IIT JEE and NEET entrance exams.

An Intiative by Sri Chaitanya

(Unlock A.I Detailed Solution for FREE)

Best Courses for You

JEE

NEET

Foundation JEE

Foundation NEET

CBSE

Detailed Solution

Compound interest,

A = P {(1 + \frac{R}{100})}^{n} . . . . . . . . . . . . . . . . . . . (1)

Where A is the final amount, P is the principal amount, R is the rate of interest and n is the number of years.
(Given)
P= 12,600
R= 10% and
n = 2 years
Now, putting these values in the equation (1) above, we will get the following expression,

A = 12600 \times {(1 + \frac{10}{100})}^{2}

A = 12600 \times {(\frac{11}{10})}^{2}

A = 12600 \times \frac{121}{100}

A = 15246

Now, we already know that P is the principal amount 12,600
Hence, interest compounded CI in 2 years is as below,
CI= A−P
CI= 15246−12600
CI= 2646
Thus, the answer to the question, the Interest Compound CI is Rs 2,646.

Watch 3-min video & get full concept clarity