A sum of ₹2000 is invested at compound interest (compounding annually). If the rate of interest is 10% per annum, then what will be the amount after 30 months?

₹2541

Time = 30 months = 2.5 years

For last 6 months , Actual rate of interest = \(\frac{10}{2}\)% = 5%

From the formula for compound interest, we know,

Amount = P(1+$\frac{R}{100})^t$

 = 2000 [ 1 + \(\frac{10}{100}\) ]²  × [ 1 + \(\frac{5}{100}\) ]

 = 2000 [ \(\frac{11}{10}\) × \(\frac{11}{10}\) × \(\frac{21}{20}\)  ]

 = 2000 [ \(\frac{2541}{2000}\) ]

= Rs. 2541