Find the amount and the compound interest on ₹5000 for 2 years at 6% per annum, interest payable yearly.

Formula for calculating amount,

A = $P\Big(1 + \dfrac{r}{100}\Big)^n$

Using formula we get,

$A = ₹5000\Big(1 + \dfrac{6}{100}\Big)^2 \\[1em] = ₹5000 \times \Big(\dfrac{106}{100}\Big)^2 \\[1em] = ₹5000 \times \Big(\dfrac{53}{50}\Big)^2 \\[1em] = ₹5000 \times \dfrac{53}{50} \times \dfrac{53}{50} \\[1em] = ₹\dfrac{14045000}{2500} \\[1em] = ₹5618.$

Compound interest = Final amount - Principal = ₹5618 - ₹5000 = ₹618.

Hence, the amount and the compound interest on ₹5000 for 2 years at 6% per annum is ₹5618 and ₹618 respectively.