Find the compound interest if 59000 are invested for 2 years at the rate of 10 p.c.p.a.​

Find the compound interest if 59000 are invested for 2 years at the rate of 10 p.c.p.a.​

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  1. Answer:

    Principal amount (P) = Rs.9000

    Rate of interest (R) = 10%

    Time period (T) = 2 years

    Mode of compounding = Annually

    In order to find the compound interest when the principal amount is compounded annually, we need to implement the formula given below:

    \sf{\implies\:A=P\left(1+\dfrac{R}{100}\right)^n}⟹A=P(1+

    100

    R

    )

    n

    Applying the formulae into the equation:

    \sf{\longrightarrow\:A=9000\left(1+\dfrac{10}{100}\right)^2}⟶A=9000(1+

    100

    10

    )

    2

    \sf{\longrightarrow\:A=9000\left(1+\dfrac{1}{10}\right)^2}⟶A=9000(1+

    10

    1

    )

    2

    \sf{\longrightarrow\:A=9000\times\dfrac{11}{10}\times\dfrac{11}{10}}⟶A=9000×

    10

    11

    ×

    10

    11

    \sf{\longrightarrow\:A=90\times11\times11}⟶A=90×11×11

    \sf{\longrightarrow\:A=90\times121}⟶A=90×121

    \sf{\longrightarrow\:A=10890}⟶A=10890

    The total amount is Rs.10890.

    Now, in order to find the C.I amount:

    \sf{\implies\:C.I=A-P}⟹C.I=A−P

    Applying the values into the formula:

    \sf{\longrightarrow\:C.I=10890-9000}⟶C.I=10890−9000

    \sf{\longrightarrow\:C.I=1890}⟶C.I=1890

    Therefore, the Compound interest amount is Rs.1890.

    Step-by-step explanation:

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