Find the amount and the compound interest on8000at 5%per annum, for 2years compounded annually
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We know that
compounded Amount= CA = P((1+i)^n
P = Principal Amount = 8000
i = Rate of interest Per Annum =5%
n = Time = 2 years
CA=8000(1 + 5/100)^2
= 8000(1 + 0.05)^2
=8000(1.05)^2
=8000 (1.1025)
= 8820
Compound Interest = Compounded Amount - Principal Amount
= 8820 - 8000
=820
compounded Amount= CA = P((1+i)^n
P = Principal Amount = 8000
i = Rate of interest Per Annum =5%
n = Time = 2 years
CA=8000(1 + 5/100)^2
= 8000(1 + 0.05)^2
=8000(1.05)^2
=8000 (1.1025)
= 8820
Compound Interest = Compounded Amount - Principal Amount
= 8820 - 8000
=820
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