Question
A sum of Rs. 10,000 is invested at 10% per annum
compound interest, compounded annually. What will be the compound interest for 2 years?Solution
Amount after 2 years: A = P(1 + R/100)² = 10,000 × (1.10)² = 10,000 × 1.21 = 12,100 CI for 2 years = A − P = 12,100 − 10,000 = 2,100
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