Find the compound interest on Rs. $5{,}000$ at $10\%$ per annum compounded annually for $2$ years.

Find the compound interest on Rs. $5{,}000$ at $10\%$ per annum compounded annually for $2$ years.
  1. Rs. $1{,}000$
  2. Rs. $1{,}050$
  3. Rs. $1{,}100$
  4. Rs. $1{,}200$

Solution

$A = P \left(1 + \dfrac{R}{100}\right)^{n} = 5000 \times (1.10)^{2} = 5000 \times 1.21 = 6050$. CI $= 6050 - 5000 = 1050$.

Asked in: IMO

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