Question

Dev borrowed a sum of rupees 2050 from a company at the rate of 8% per annum compound interest for 2 years find the amount he has to pay

Answer 1

Your answer is in the attachment.

Answer 2

Given: Money borrowed by Dev = Rs. 2,050

          Rate of compound interest = 8% p.a.

           Time  = 2 years

To find: The amount he has to pay after 2 years

Solution: According to the given question,

Principal (P) = Rs. 2,050

Rate of interest (R) = 8% p.a.

Time (n) = 2 years

Amount to be paid after 2 years  = ?

∵ $Amount = Principal(1 + \frac{R}{100}) ^{n}$

⇒ $Amount = 2,050 (1 + \frac{8}{100}) ^{2}$

                  =  $2,050 (\frac{100 \ + \ 8}{100}) ^{2} = 2,050 \ * \ \frac{108}{100} \ * \ \frac{108}{100}$

                  = $Rs. \ 2,391.12$

Hence, Dev has to pay Rs. 2,391.12 after 2 years.