This mathematics problem involves applying core mathematical principles and formulas. Below you will find a complete step-by-step solution with detailed explanations for each step, helping you understand not just the answer but the method behind it.
ScanSolve AI Answer
Step 1: Identify the given values. The principal amount (P) is ₹6,000. The annual rate of interest (R) is 10\%. The time period (T) is 2 years. Step 2: Calculate the effective compound interest rate for 2 years. For two years, the effective compound interest rate can be calculated using the formula: R_effective = (R + R + (R × R)/(100))\% Substitute R = 10\%: R_effective = (10 + 10 + (10 × 10)/(100))\% R_effective = (20 + (100)/(100))\% R_effective = (20 + 1)\% R_effective = 21\% Step 3: Calculate the compound interest. Compound Interest (CI) is the principal multiplied by the effective rate. CI = P × R_effective100 CI = 6000 × (21)/(100) CI = 60 × 21 CI = 1260 The compound interest is ₹1,260. The final answer is ₹1,260.