Question

calculate the amount and compound interest on 8000 at 8% PF for 2 years

Answer 1

9331.2. as 8000(1+8/100)*2

Answer 2

Principal (Money invested) = 8000

Rate = 8% = 0.08

Use the formula, Amount = Principal × (1 + Rate of interest)^Time, to find the amount after two years.

Amount = 8000 × (1 + 0.08)² which will give you 9331.2.

Now, we find the compound interest using the formula Interest = Amount - Principal.

Interest = 9331.2 - 8000 = 1331.2