Question

find the amount and the compound interest on 8000 rs at 5% per annum for 2 years compounded annualy​

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 =  $\text{Principal} \times (1+\text{Rate of Interest})^{\text{Time})}$

                                      Or

                        $A=P\times (1+R)^{T}$

                       

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

                       $A=8000\times (1+0.05)^{2}$

                       A = $8000 \times (1.05)^{2}$

                       A = $8000 \times 1.1025$

                       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.

Answer 2

Answer:

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.