Question

Find the amount and compound interest of ₹ 24000 at 10% per annum for 2 years.

Answer 1

Given:

• Principal, P = ₹ 24000
• Rate of interest, r = 10% per annum
• Time, n = 2 years

Step-wise calculation:

1. Calculate the amount A using the compound interest formula: 

`A = P(1 + r/100)^n`

`A = 24000 xx (1 + 10/100)^2`

`A = 24000 xx (110/100)^2`

2. Calculate:

`A = 24000 xx 11/10 xx 11/10`

`A = 24000 xx 121/100`

A = 29040

3. Calculate compound interest (CI):

CI = A – P

= 29040 – 24000

= 5040

The amount after 2 years is ₹ 29,040.

The compound interest earned is ₹ 5,040.