Question

A sum of ruppees 20000 is borrowed by heena for 2 years at an interest of 8 percent compounded annually. Find the compound interest and the amount to be paid at the end of 2years

Answer 1

Answer:

Interest = 3328/- and total amount to pay is 23328/-

Step-by-step explanation:

formula is A = P(1+r/100)^n

A = Total amount including interest

P = money borrowed by Heena

r = rate of interest

n = number of time ( tenure )

so, A = 20000(1+8/100)^2

A = 23328

compound interest = A - P

                                = 23328 - 20000

                                = 3328/-