Find the amount and the compound interest on Rs 2500 for 2 years at 10% per annum,

Question:

Find the amount and the compound interest on Rs 2500 for 2 years at 10% per annum, compounded annually.

Solution:

Principal for the first year $=$ Rs. 2500

Interest for the first year $=$ Rs. $\left(\frac{2500 \times 10 \times 1}{100}\right)=$ Rs. 250

Amount at the end of the first year $=$ Rs. $(2500+250)=$ Rs. 2750

Principal for the second year $=$ Rs. 2750

Interest for the second year $=$ Rs. $\left(\frac{2750 \times 10 \times 1}{100}\right)=$ Rs. 275

Amount at the end of the second year $=$ Rs. $(2750+275)=$ Rs. 3025

$\therefore$ Compound interest $=$ Rs. $(3025-2500)=$ Rs. 525

Leave a comment

Close
faculty

Click here to get exam-ready with eSaral

For making your preparation journey smoother of JEE, NEET and Class 8 to 10, grab our app now.

Download Now