Question

find the amount and the compound interest on rs 2000 in 2 1/2 years when the rate is 8 % p.a. compounded annually

Answer 1

Answer:

For the first year, P=Rs.2000,R=5%

so, I = 100P×R×T=100Rs.2100×5×1=Rs.105

The amount after the second year =Rs.2100+Rs.105

=Rs.2205

Final amount =Rs.2205

Hence, Compound Interest = final amount - original amount 

=Rs.2205−Rs.2000=Rs.205