Question

Find the amount and the compound interest on ₹8000 at5//persent per annum,for 2 yeasrs compounded annually

Answer 1

Principal=8000,Rate=5%p.a. and T=2 years

A=P(1+r\100)t   = 8000(1+5/100)^2

=8000(1+1/20)^2    =8000(21/20)^2

=8000*21/20*21/20

Therefore,Amount=8820

Compound Interest=Amount-Principal

=8820-8000

=20      I hope i have brought a smile on your face!