Calculate the amount and the compound interest on Rs. 12,000 in 2 years at 10% per year.

Answer

To calculate the amount and the compound interest on Rs. 12,000 in 2 years at 10% per year, follow these steps:

### Step 1: Identify the given values
- Principal (P) = Rs. 12,000
- Rate of interest (R) = 10% per annum
- Time (T) = 2 years

### Step 2: Use the formula for compound amount
The formula for calculating the amount (A) in compound interest is:
\[ A = P \left(1 + \frac{R}{100}\right)^n \]
where \( n \) is the number of years.

### Step 3: Substitute the values into the formula
Substituting the values we have:
\[ A = 12000 \left(1 + \frac{10}{100}\right)^2 \]

### Step 4: Simplify the expression inside the brackets
Calculate \( 1 + \frac{10}{100} \):
\[ 1 + \frac{10}{100} = 1 + 0.1 = 1.1 \]

### Step 5: Raise the result to the power of 2
Now calculate \( (1.1)^2 \):
\[ (1.1)^2 = 1.1 \times 1.1 = 1.21 \]

### Step 6: Calculate the amount
Now substitute back to find the amount:
\[ A = 12000 \times 1.21 = 14520 \]

### Step 7: Calculate the compound interest
The formula for compound interest (CI) is:
\[ CI = A - P \]
Substituting the values we found:
\[ CI = 14520 - 12000 = 2520 \]

### Final Answers
- Amount (A) = Rs. 14,520
- Compound Interest (CI) = Rs. 2,520

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