Question

Find the amount and compound intrest 8000 for 4 years at 10% p.a intrest reckoned yearly
please show me how to do this sum​

Answer 1

Formula of finding amount in compound interest =

$a = p \times (1 + \frac{r}{100} ) {}^{t}$

Principal here = 8000

Rate = 10%

Time = 4 years

therefore,

$a = 8000 \times (1 + \frac{10}{100} ) {}^{4}$

or,

$8000 \times (1 + \frac{1}{10} ) {}^{4}$

or,

$8000 \times ( \frac{11}{10} ){}^{4}$

or,

$8000 \times \frac{11}{10} \times \frac{11}{10} \times \frac{11}{10} \times \frac{11}{10}$

or,

$\frac{8 \times 11 \times 11 \times 11 \times 11}{10} = 11712.8$

therefore,

Amount = 11712.8

Compound interest = Amount - Principle

= 11712.8 - 8000 = 3712.8

Answer 2

Answer:

Amount = 11712.8

Compound Interest = 3712.8