Question

8. 8,000 is lent out at 7% compound interest
for 2 years. At the end of the first year
3,560 are returned. Calculate :
(i)"the interest paid for the second year.
(ii) the total interest paid in two years
(iii) the total amount of money paid in two
years to clear the debt. :
A​

Answer 1

Answer:

(i) The interest for the second year = 599.2 Rs.

(ii) Total interest paid in two years  = 1159.2 Rs.

(iii) Total amount of money paid in two years = 9159.2 Rs.

Step-by-step explanation:

If the principal amount is P rate of interes r% and the tenure is n years then the amount compounded

$A=P(1+\frac{r}{100})^n$

Here

P = 8000 Rs.

r = 7%

n = 2 years

Therefore,

$A=8000(1+\frac{7}{100})^2$

or, $A=8000\times1.07^2=9159.2$ Rs.

Amount compounded at the end of second year

$A'=8000(1+\frac{7}{100})^1=8000\times 1.07=8560$ Rs.

Total interest in the second year = 9159.2-8560= 599.2 Rs.

Total interest paid in 2 years = 9159.2-8000 = 1159.2 Rs.

Total amount of money paid in two years = 9159.2 Rs.

Hope this answer is helpful.