Question 59
A sum of ₹ 5000 is invested for two years under compound interest at 10% p.a, interest being compounded annually. The interest earned (in ₹) is:
Solution
Given, Principal = Rs.5000
Rate of interest = 10%
Time period = 2 years
Amount at Compound Interest for 2 years = $$\dfrac{110}{100}\times\dfrac{110}{100}\times5000 = 121\times50 = Rs.6050$$
Therefore, Compound Interest = Rs.6050 - Rs.5000 = Rs.1050.
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