Question

find out the compound interest for rs 800/- at the rate of 10% per annum for 2 years​

Answer 1

₹80 for year and ₹160 for 2 year

Answer 2

Answer:

• Principal = Rs. 800
• Rate = 10% per annum
• Time = 2 years
• Compound Interest = ?

Compound Interest : Such interest in which interest is calculated on principal as well as interest of last year.

• Simple Interest and Compound Interest of First Year remains same.

• According to the Question :

⠀⠀⠀⠀⠀Interest of First Year

⇒ Interest = P × Rate × Time

⇒ Interest = 800 × 10% × 1

⇒ Interest = 800 × 10/100

⇒ Interest = 8 × 10

⇒ Interest = Rs. 80

⠀⠀⠀⠀⠀Interest of Second Year

⇒ Interest = (P + Interest of last year) × Rate × Time

⇒ Interest = (800 + 80) × 10% × 1

⇒ Interest = 880 × 10/100

⇒ Interest = 88 × 1/10

⇒ Interest = Rs. 88

⠀⠀⠀⠀⠀───────────────

• Compound Interest on the sum :

⇢ CI = Interest of (1st year + 2nd year)

⇢ CI = Rs. 80 + Rs. 88

⇢ CI = Rs. 168

∴ Hence, CI on the give sum is Rs. 168.