What is the compound interest earned for a principal amount of ₹ 1,200 at a rate of interest of 10% for 2 years?

To find the compound interest (CI), we first calculate the total amount ($A$) using the formula:$$A = P \left(1 + \frac{r}{100}\right)^n$$Given: * Principal ($P$) = ₹ 1,200Rate ($r$) = 10%Time ($n$) = 2 yearsCalculation: 1. Total Amount:$$A = 1200 \left(1 + \frac{10}{100}\right)^2 = 1200 \times (1.1)^2$$$$A = 1200 \times 1.21 = ₹ 1,452$$Compound Interest:$$CI = \text{Amount} - \text{Principal}$$$$CI = 1,452 - 1,200 = ₹ 252$$