Question
Find the compound interest on Rs. 5000 at 12% per annum
for 2 years, compounded annually.Solution
Amount A = P(1 + r/100)² = 5000 × (1 + 12/100)² = 5000 × (1.12)² = 5000 × 1.2544 = 6272 Compound interest = A − P = 6272 − 5000 = 1272
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