Question

A man borrowed ₹ 20,000 for 2 years at 8% per year compound interest. Calculate:

(i) the interest of the first year

(ii) the interest of the second year

(iii) the final amount at the end of the second year

(iv) the compound interest of two years

Answer 1

i)Simple interest for 1st year:
$p \times r \times t \div 100 \\ = 20000 \times 8 \times 1 \div 100 \\ = 200 \times 8 \\ = 1600$
iii) amount at the end of 2nd year:
$amount = p(1 + \frac{r}{100} ) \\ amount = 20000(1 + \frac{8}{100} ) \\ 20000 \times \frac{108}{100 } = amount \\ amount = 200 \times 108 = 21600$

Answer 2

(1) first simple interest 1st year is equal to time time upon divide 100 equal to 20000 time at X upon 100 upon equal to 200 is equal to time it is equal to 1600 first