Compound interest
PART-B Unit I: Aptitude
PART-B • Unit I: Aptitude & Mental Ability
Topic: Compound Interest • 15 Model Questions
Organized systematically from Easy to Complex with Step-by-Step Mathematical Solutions and LaTeX Formulas
Level 1: Basic Annual Compounding & Standard Formulas
Easy
Question 01
Direct 2-Year Compound Interest
Find the compound interest on ₹1,000 at \(10\%\) per annum for \(2\) years, compounded annually:
💡 Explanation:
- Formula: \(A = P\left(1+\frac{r}{100}\right)^n\) and \(\mathrm{CI}=A-P\)
- Given: \(P=1000,\; r=10\%,\; n=2\) years.
- Amount:
\(A=1000\left(1+\frac{10}{100}\right)^2=1000\left(\frac{11}{10}\right)^2=1000\times\frac{121}{100}=1210\)Therefore, the amount is ₹1,210.
- Compound Interest:
\(\mathrm{CI}=A-P=1210-1000=210\)Therefore, the compound interest is ₹210.
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