1.

The compound interest on ₹ 5000 at 12% p.a for 2 years compounded annually is ………..

Answer»

₹ 1272

Compound Interest (Cl) formula is

Cl = Amount – Principal

Amount = A (1 + r/100)n 

= 5000 (1 + 12/100)2

= 5000 (1 + 112/100)2 

= 6272

∴ Cl = 6272 – 5000 = ₹ 1272



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