What is the compound interest on ₹24,000 for 2 years at the rate of 10% per annum, if interest is compounded annually?

₹5,040

From the formula for compound interest, we know,

C.I = P(1+$\frac{R}{100})^t$– P

= 24000 [ 1 + \(\frac{10}{100}\) ]² - 24000

= 24000 [ \(\frac{11}{10}\) × \(\frac{11}{10}\) - 1 ]

= 24000 [ \(\frac{121}{100}\)  - 1 ]

= 24000 [ \(\frac{21}{100}\) ]

= Rs. 5040