Question

Calculate the amount & C.I on Rs 10,000 for 2yrs at 8% p.a compounded annually.

Answer 1

Answer:

Given :-

• A sum of Rs 10000 for 2 years at 8% p.a. compounded annually.

To Find :-

• What is the amount and compound interest.

Formula Used :-

$\bigstar$ Amount Formula :

$\mapsto \sf\boxed{\bold{\pink{A =\: P\bigg\{1 + \dfrac{r}{100}\bigg\}^n}}}$

$\bigstar$ Compound Interest or C.I Formula :

$\mapsto \sf\boxed{\bold{\pink{C.I =\: A - P}}}$

where,

• A = Amount
• P = Principal
• r = Rate of Interest
• n = Time Period
• C.I = Compound Interest

Solution :-

First, we have to find the amount :

Given :

• Principal = Rs 10000
• Rate of Interest = 8% p.a.
• Time Period = 2 years

According to the question by using the formula we get,

$\leadsto \sf A =\: 10000\bigg\{1 + \dfrac{8}{100}\bigg\}^2$

$\leadsto \sf A =\: 10000\bigg\{\dfrac{108}{100}\bigg\}^2$

$\leadsto \sf A =\: 10000 \times \dfrac{108}{100} \times \dfrac{108}{100}$

$\leadsto \sf A =\: \dfrac{11664\cancel{0000}}{1\cancel{0000}}$

$\leadsto \sf\bold{\purple{A =\: Rs\: 11664}}$

Now, we have to find the compound interest :

Given :

• Amount = Rs 11664
• Principal = Rs 10000

According to the question by using the formula we get,

$\implies \sf C.I =\: Rs\: 11664 - Rs\: 10000$

$\implies \sf\bold{\red{C.I =\: Rs\: 1664}}$

$\therefore$ The amount and compound interest is Rs 11664 and Rs 1664.