Sailesh lends a sum of Rs. 6000 to Kalyan at the rate of 10% per annum compounded annually. Find the amount at the end of 2 years.

Explanation

Principal, `P_(1)=Rs. 6000`
Rate of interest, R=10%
Time period =2 years
Interest for the first year, `I=(P_(1)TR)/(100)=(6000xx1xx10)/(100)=Rs. 600`
`therefore` Principal for 2nd year `(P_(2))=P_(1)+I=Rs. 6000+Rs. 600= Rs. 6600`
Interest for the 2nd year `=(P_(2)TR)/(100)=(Rs. 6000xx 1xx10)/(100)=Rs. 660`
`therefore` Amount at the end of 2years.
=P + Inerest for 1st year + Interest for 2nd year =Rs. 6000+ Rs. 600+ Rs. 660= Rs. 7260
Alternate method
`A=P(1+(R )/(100))^(n)=6000(1+(10)/(100))^(2)=6000((11)/(10))^(2)=60xx121=7260`
`implies A= Rs. 7260`