Question

Calculate the amount and compound interest on ₹20,000 for 2 years @ 8% p.a compounded annually​

Answer 1

Correct Question ::

Calculate the amount and compound interest on ₹20,000 for 2 years at 8% p.a compounded annually.

Answer ::

• The amount is Rs. 216000
• The compound interest is Rs. 1600

Step-by-step explanation ::

To Find :-

• The amount
• The compound interest

Solution :-

Given that,

• Principal = Rs. 20,000
• Time = 2 years
• Rate = 8%

ACCORDING THE QUESTION,

By using formula,

$\underline{ \boxed{\sf{Amount = \bigg \{P \times \bigg(1+\dfrac{R}{100}\bigg)}^{n} \bigg\}}}$

Therefore,

$\sf{ \mapsto \: A = \bigg \{20000 \times \bigg(1+\dfrac{8}{100}\bigg)}^{2} \bigg\} \\ \\ \\ \sf{ \mapsto \: A = \bigg \{20000 \times \bigg(\dfrac{27}{25}\bigg)}^{2} \bigg\} \\ \\ \\ \sf{ \mapsto \: A = \bigg \{20000 \times \bigg( \dfrac{27}{25} \times \dfrac{27}{25}\bigg)} \bigg\} \\ \\ \\ \sf{ \mapsto \: A = 20000 \times \dfrac{27}{25} \times \dfrac{27}{25}} \\ \\ \\ \sf{ \mapsto \: A = \cancel{20000} \times \dfrac{27}{ \cancel{25}} \times \dfrac{27}{25}} \\ \\ \\ \sf{ \mapsto \: A = 800 \times 27 \times \dfrac{27}{25}} \\ \\ \\ \sf{ \mapsto \: A = \cancel{800} \times 27 \times \dfrac{27}{ \cancel{25}}} \\ \\ \\ \sf{ \mapsto \: A = 32 \times 27 \times 25} \\ \\ \\ \sf{ \mapsto \: A = 21600}$

Therefore, the amount is Rs. 21600.

Now, compound interest is,

As we know that,

$\underline{\boxed{ \sf{Compound \: interest = Amount - Principal}}}$

$\sf{ \mapsto \: C.I. = 21600 - 20000} \\ \\ \\ \sf{ \mapsto \: C.I. = 1600}$

Therefore, the Compound Interest is Rs. 1600.