Question

A man Rs. 8000 invested for 2 years at 10% per annum, compounded annually Compute the amount at the end of first year

Answer 1

Simple Interest I=

100

PNR

Here for first year,

P=Rs8,000

N=1year

R=10 %

So, Interest at the end of 1st year I=

100

8,000×1×10

=Rs800

So, for second year,

P=Rs8000+Rs800=Rs8800

N=1year

R=10 %

I=

100

8800×1×10

=Rs880

And Amount =Rs8800+Rs880