Q1. Without using CI. formula, calculate compoundinterest ona) Rs.6000

1.	Q1. Without using CI. formula, calculate compoundinterest ona) Rs.6000 for 2 years at 10% p.a.b) 50,000 for 2 %2 years at 10% p.a.
Answer» Answer: a)Given Rate of INTEREST = 10% per annum Principal for the first year = Rs 6000 Interest for the first year = Rs (6000 × 10 × 1) / 100 = Rs 600 Amount at the end of first year = Rs 6000 + Rs 600 = Rs 6600 Principal for the second year = Rs 6600 Interest for the second year = Rs (6600 × 10 × 1) / 100 = Rs 660 Amount for the second year = Rs 6600 + Rs 660 = Rs 7260 Therefore, compound interest for 2 years = final amount – (original) Principal = Rs 7260 – Rs 6000 We GET, = Rs 1260

Q1. Without using CI. formula, calculate compoundinterest ona) Rs.6000 for 2 years at 10% p.a.b) 50,000 for 2 %2 years at 10% p.a.

Answer»

Answer:

a)Given

Rate of INTEREST = 10% per annum

Principal for the first year = Rs 6000

Interest for the first year = Rs (6000 × 10 × 1) / 100

= Rs 600

Amount at the end of first year = Rs 6000 + Rs 600

= Rs 6600

Principal for the second year = Rs 6600

Interest for the second year = Rs (6600 × 10 × 1) / 100

= Rs 660

Amount for the second year = Rs 6600 + Rs 660

= Rs 7260

Therefore, compound interest for 2 years = final amount – (original) Principal

= Rs 7260 – Rs 6000

We GET,

= Rs 1260