Question
A sum of Rs. 100 is invested at 10% per annum compound
interest (compounded annually) for two years. How much interest will be received after two years?Solution
given -P=100, r= 10%, t =2year Then the use of- A= P[1+r/100] Í A=100[1+10/100] ² =100[11/10] ² =100Ă121/100 A= 121 so now compound interest = A-P =121-100 CI=21 Rs
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