Question

Find the amount and compound interest on a sum of 8000 for 2year at 5% per annum compounded annually

Answer 1

Answer:

COMPOUND INTEREST = AMOUNT - PRINCIPAL, SO THE COMPOUND INTEREST = 820

Answer 2

Step-by-step explanation:

ǫᴜᴇsᴛɪᴏɴ :

ғɪɴᴅ ᴛʜᴇ ᴀᴍᴏᴜɴᴛ ᴀɴᴅ ᴄᴏᴍᴘᴏᴜɴᴅ ɪɴᴛᴇʀᴇsᴛ ᴏɴ ᴀ sᴜᴍ ᴏғ 8000 ғᴏʀ 2 ʏᴇᴀʀ ᴀᴛ 5% ᴘᴇʀ ᴀɴɴᴜᴍ ᴄᴏᴍᴘᴏᴜɴᴅᴇᴅ ᴀɴɴᴜᴀʟʟʏ.

sᴏʟᴜᴛɪᴏɴ :

ᴘʀɪɴᴄɪᴘᴀʟ ɪɴ ᴛʜᴇ ғʀɪsᴛ ʏᴇᴀʀ = 8000

ɪɴᴛᴇʀᴇsᴛ ɪɴ ᴛʜᴇ ғʀɪsᴛ ʏᴇᴀʀ =

$( \frac{8000 \times 6 \times 1}{100} ) =$

ᴀᴍᴏᴜɴᴛ ᴀᴛ ᴛʜᴇ ᴇɴᴅ ᴏғ ᴛʜᴇ ғʀɪsᴛ ʏᴇᴀʀ = (8000+480) = 8480

ᴘʀɪɴᴄɪᴘᴀʟ ғᴏʀ ᴛʜᴇ sᴇᴄᴏɴᴅ ʏᴇᴀʀ = 8480

ɪɴᴛᴇʀᴇsᴛ ғᴏʀ ᴛʜᴇ sᴇᴄᴏɴᴅ ʏᴇᴀʀ =

$( \frac{8480 \times 6 \times 1}{100} )$

ᴀᴍᴏᴜɴᴛ ᴀᴛ ᴛʜᴇ ᴇɴᴅ ᴏғ ᴛʜᴇ sᴇᴄᴏɴᴅ ʏᴇᴀʀ = (8480 + 508.8) = 8988.8

ᴛʜᴇʀᴇғᴏʀᴇ ᴀᴍᴏᴜɴᴛ = 8988.8

ᴄᴏᴍᴘᴏᴜɴᴅ ɪɴᴛᴇʀᴇsᴛ = 8988.8 - 8000 = 988.8