Question

calculate the interest on 7000 for 2 years at the rate of 8% per annum when the interest is compound annualy.

Answer 1

I think your ans. is 1164.8

Answer 2

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$\underline\bold{\huge{SOLUTION \: :}}$

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GIVEN INFORMATIONS :

(1) P = Rs. 7000
(2) n = 2 years
(3) r = 8%.


BY USING FORMULA,


C. I. = P [(1+r/100)^n - 1]

=> C. I. = 7000 [(1+8/100)²-1]

=> C. I. = 7000 [(27/25)² - 1]

=> C. I. = 7000 [(729/625)-1]

=> C. I. = 7000 × (104/625)

=> C. I. = 1164.80

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SO, THE COMPOUND INTEREST ON Rs. 7000 FOR 2 YEARS AT 8% PER ANNUM IS Rs. 1164.80$\bold{[ANSWER]}$

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