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

Given:

P = ₹ 12,000

R = 10%

n = 2 years

$\text{A} = P\Big[1 + \dfrac{R}{100}\Big]^n\\[1em] = 12,000\Big[1 + \dfrac{10}{100}\Big]^2\\[1em] = 12,000\Big[1 + \dfrac{1}{10}\Big]^2\\[1em] = 12,000\Big[\dfrac{10}{10} + \dfrac{1}{10}\Big]^2\\[1em] = 12,000\Big[\dfrac{(10 + 1)}{10}\Big]^2\\[1em] = 12,000\Big[\dfrac{11}{10}\Big]^2\\[1em] = 12,000\Big[\dfrac{121}{100}\Big]\\[1em] = \Big[\dfrac{1,45,200}{1000}\Big]\\[1em] = 14,520$

Also

$\text{Compound Interest = Final amount - Original Principal}\\[1em] = ₹ 14,520 - ₹ 12,000\\[1em] = ₹ 2,520$

Hence, amount = ₹ 14,520 compound interest = ₹ 2,520.