Compound interest:
[tex]a = p( 1 + \frac{r}{n} ) { }^{nt} [/tex]
a = final amount
p = principal amount
r = rate of interest
t = time
n = no. of compounding periods per year
p = 10000
r = 5% = 5/100 = 0.05
t = 2
n = 1
[tex]a = 10000(1 + \frac{0.05}{1} ) {}^{2 \times 1} [/tex]
[tex]a = 10000(1 + 0.05) {}^{2} [/tex]
[tex]a = 10000(1.05) {}^{2} [/tex]
[tex]a = 10000(1.1025)[/tex]
[tex]a = 11025[/tex]
