Question

6. Find the amount on 8000 at 7% per annum compounded annually for 2 years.
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Answer 1

Answer:

Given:

Present value P=₹ 8000

Interest rate for the first year, p=9% per annum

Interest rate for the second year, q=10% per annum

So, Amount can be calculated using:

Amount (A)=P×(1+p/100)×(1+q/100)

Now substituting the values in above formula we get,

⇒A=8000×(1+9/100)×(1+10/100)

⇒A=8000×(109/100)×(11/10)

⇒A=8×109×11

⇒A=₹ 9592