What will be the compound interest on a sum of ₹4,50,000 at the rate of 10% per annum in 2 years, if interest is compounded annually?

compound interest on a sum of ₹4,50,000 at the rate of 10% per annum in 2 years, if interest is compounded annually?

$$compound\ interest=principal\left[\left(1+\frac{rate}{100}\right)^{time}\ -\ 1\right]$$

$$=450000\left[\left(1+\frac{10}{100}\right)^2\ -\ 1\right]$$

$$=450000\left[\left(1+\frac{1}{10}\right)^2\ -\ 1\right]$$

$$=450000\left[\left(\frac{11}{10}\right)^2\ -\ 1\right]$$

$$=450000\left[\frac{121}{100}\ -\ 1\right]$$

$$=450000\times\left[\frac{21}{100}\right]$$

$$=4500\times21$$

= ₹94,500