Question

Find C.I. on a sum of Rs 8000 2 years at 5% per annum compounded annually.

Answer 1

Given :-

• P = Rs 8000
• R = 5% per annum
• T = 2 years

Solution :-

• A = P (1 + R/100)^t
• 8000 (1 + 5/100)² = 8000 (1 + 1/20)²
• 8000 × 21/20 × 21/20
• 20 × 21 × 22 = Rs 8820
• C.I. = A - P
• Rs (8820 - Rs 8000) = Rs 820

$\:$

Answer 2

A = P (1 + R/100)^t

8000 (1 + 5/100)² = 8000 (1 + 1/20)²

8000 × 21/20 × 21/20

20 × 21 × 22 = Rs 8820

C.I. = A - P

Rs (8820 - Rs 8000) = Rs 82