5200 Taka is lent at compound interest of 10% per annum for 2 years. Find the amount after two years.

Question: 5200 Taka is lent at compound interest of 10% per annum for 2 years. Find the amount after two years.

Solution:
Compound amount = P (1 + r)ⁿ
= 5200 [1 + (10/100)]²
= 5200 × (110/100) × (110/100)
= 52 × 11 × 11
= 6292

Hence, The amount after two years is Tk. 6292