Compound interest
Commercial arithmetic · Mathematics
Study notes
Q: ₹10,000 at 10% compounded annually for 2 years. Find CI. Step 1: A = 10000(1 + 10/100)² = 10000 × (1.1)². Step 2: (1.1)² = 1.21. A = 10000 × 1.21 = ₹12,100. Step 3: CI = 12100 − 10000 = ₹2,100. Compare: SI would be ₹2,000. Extra ₹100 is 'interest on interest'.