Find the compound interest on $\text{Rs. }14,000$ for $2$ years at $5\%$ per annum, interest being payable annually.

The formula for the total amount $A$ under annual compound interest is:
$$A=P{\left(1+\frac{R}{100}\right)}^n$$

Where:

* $P=14000$
* $R=5\%$
* $n=2\text{ years}$

Substituting the values:

$$A=14000\times {\left(1+\frac{5}{100}\right)}^2$$

$$A=14000\times (1.05{)}^2$$

$$A=14000\times 1.1025=15435$$

Compound Interest ($CI$) is given by:

$$CI=A-P=15435-14000=1435$$