Meera borrowed a sum of Rs. 1000 from Sita for two years. If the rate of interest is 10% compounded annually, find the amount that Meera has to pay back.

Question

Philoid · Accepted Answer

Given,

Principal = Rs.1000

Rate of interest = 10% p.a

Time = 2 years

Hence,

Compound interest =

=

So,

Amount that Meera has to pay back = Rs.(1000+210) = Rs.1210