If ₹ 12000 is invested for two years at compound interest (compounded annually) at the rate of 20% per annum,then what is the interest?
principal p = 12000
rate of interest R= 20%
1st year interest = 20% of 12000 = 2400
2nd year interest = 20 % of 12000 + 20% of 2400 (20% on interest earned in 1st year)
2400+480 = 2880
total interest after 2 years = 2400+2880 = 5280
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