Question

find CI on a sum of rupees 8000 for 2 years at 5% per annum compounded annually

Answer 1

Ans is 8820 compounded annually

Answer 2

Hi ,

Principal ( P ) = Rs8000

Time ( T ) = 2 years

Rate of interest ( r ) = 5%

Number of times interest paid ( n ) = 2

Amount ( A ) = P( 1 + r/100 )^n

A = 8000( 1 + 5/100 )²

= 8000 ( 1 + 1/20 )²

= 8000 ( 21/20 )²

= ( 8000 × 21 × 21 )/ ( 20 × 20 )

= 8820

A = Rs 8820

Therefore ,

Compound interest = A - P

CI = 8820 - 8000

= Rs820

I hope this helps you.

: )