Question

Calculate compound interest for second year on rs8000 invested for 3 year at 10 percent

Answer 1

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Compound interest = ?

Principle amount = ₹ 8,000

Interest rate = 10% =$\frac{10}{100}$

Compound interest formula

$C.P. = P ( (1+r)^{t})$

$Compound \: interest \: for \: 2 \: year \\\implies \text{amount we gain after 2 year - initial amount - Interest we get in first year}\\\implies P ( (1+r)^{t}) - 8000- Prt\\\implies 8000((1+\frac{10}{100})^{2}) - 8000 - \frac{8000\times10\times1}{100}\\\implies 8000((1+\frac{1}{10})^{2}) - 8000 - \frac{80000}{100}\\\implies 8000((\frac{10+1}{10})^{2})-8000-800 \\\implies 8000((\frac{11}{10})^{2})-8000-800 \\\implies 8000(\frac{121}{100}-8800\\\implies 80×121-8800\\\implies 9,680-8800\\\implies Rs \:880$

$\pink{\underline{Answer}}$

$\red{\boxed{Compound\: interest\: of \: 2\: year = Rs\: 880}}$