Given:
Present value= ₹ 10000
Interest rate= 11% per annum
Time=2 years
To find the amount we have the formula,
Amount (A) = P (1+(R/100))n
Where P is present value, r is rate of interest, n is time in years.
Now substituting the values in above formula we get,
∴ A = 10000 (1 + 11/100)2
⇒ A = 10000 (111/100)2
⇒ A = 10000 (111/100) (111/100)
⇒ A = 111 × 111
⇒ A = ₹ 12321
∴ Compound interest = A – P
= 12321 – 10000= ₹ 2321
