Question

13. A person borrowed 8,000 to buy a
machine. If the rate of compound interest is
10p.c.p.a. what amount will he pay at the
end of 2 years?
​

Answer 1

Answer:

Rs. 9660

Step-by-step explanation:

Principal = 8000

Rate = 10

Time = 2y

For first year:

$\frac{8000 x 10}{100}$

[ We cut 00 of 100 and 8000]

= 80 x 10

= 800

So after first year the amount to pay turns into Rs. 8800.

Second year:

$\frac{8800 x 10}{100}$

[ We cut 00 of hundred and 8800]

= 88 * 10

= 880

Amount to pay after second year is 9660