Question

find the amount and the compound interest on ₹8000 at5% per annum, for 2 years compound anually
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Answer 1

Amount = Rs 8820

Compound Interest = Rs 820.

Step-by-step explanation:

We have to find the amount and the compound interest on Rs. 8000 at 5% per annum for 2 years compounded annually.

Let the Principal sum of money = P

Rate of Interest = R

Time Period = T

Amount of money = A

As we know that Amount formula for compounded annually is given by;

Amount =

Or

Now, we are given with P = Rs 8000 , R = 5% p.a. and T = 2 years; we have to find the amount,i.e;

A =

A =

A = Rs 8820

That means Amount = Rs 8820

Also, Compound Interest formula is given by;

Amount = Principal + Compound Interest

Compound Interest = Amount - Principal

= Rs (8820 - 8000)

= Rs 820

Therefore, amount and the compound interest on Rs 8000 at 5% per annum for 2 years compounded annually are Rs 8820 and Rs 820 respectively.