Question

A man borrowed 20,000 for 2 years at 8%
per year compound interest. Calculate :
(1) the interest of the first year.
2)the interest of second year.
3)the final amount at the end of the second year.​

Answer 1

Answer:

Step-by-step explanation:

Interest for only first year is same for simple and compound interest

20000*8*1/100 = interest

1600 = interest for first yr

second year principle = 21600

interest = 21600(108/100)^2

=25194.24-21600

2nd yr interest = 3594.24

final amount at the end of 2nd year is 25194.24

Answer 2

Answer:

3200+20000

Step-by-step explanation: