2100 Taka is lent at compound interest of 5% per annum for 2 years. Find the amount after two years.

Question: 2100 Taka is lent at compound interest of 5% per annum for 2 years. Find the amount after two years.

Solution:
Here,
p = Tk. 2100
r% = 5%
n = 2 years

C = p[1 + (r/100)]ⁿ
= 2100 [1 + (5/100)]2
= 2100 × [105/100]²
= (2100 × 11025)/10000
= 2315.25

Hence, the amount after two years is Tk. 2315.25