Question

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

Answer 1

We have,

A = P`(1 + R/100)^n`, where Principal (P) = ₹ 12600, Rate (R) = 10, Number of years (n) = 2

= ₹ 12600`(1 + 10/100)^2`

= ₹ 12600`(11/10)^2`

= ₹ `12600 xx 11/10 xx 11/10`

= ₹ 15246.

CI = A - P

= ₹ 15246 - ₹ 12600 

= ₹ 2646.