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Ans. (i) Here, Principal (P) = Rs. 8000, Rate of Interest (R) = 5%, Time = 2 years
Amount (A) = 8000*[1+5/100]^2
= Rs. 8,820
(ii) Here, Principal (P) = Rs. 8000, Rate of Interest (R) = 5%, Time = 3 years
Amount (A) = 8820*[1+5/100]
= Rs. 9,261
Interest for 3rd year = A – P
= Rs. 9,261 – Rs. 8,820 = Rs. 441
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