Example1. Principal P = 1000, Rate R = 10, Time T = 2 years, find CI (Interest Compounded Annually)
Solution:
Principal `P=1000`
Rate of interest `R=10%`
Time `T=2` year
Find `CI,` (Interest Compounded Annually)
We know that
`A=P*(1+R/(100n))^(nT)`
`:.A=1000 xx (1+10/(100xx1))^(1xx2)`
`:.A=1000 xx (1+0.1)^(2)`
`:.A=1000 xx 1.21`
`:.A=1210`
Now, `CI=A-P`
`:.CI=1210-1000`
`:.CI=210`
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