Question

Find the amount for ₹15000 at 8% per annum compounded annually for two years

Answer 1

When Compounded Annually -

Principle (P) = Rs. 15,000

Rate (R) = 8% p.a. [Compounded Annually]

Time (t) = 2 years

∴ Amount = P × (1 + R / 100)ᵗ

= Rs. { 15,000 × (1 + 8 / 100)² }

= Rs. { 15,000 × [ (100 + 8) / 100 ]²

= Rs. { 15,000 × [ 108 / 100 ]²

= Rs. { 15,000 × 108/100 × 108/100 }

= Rs. { 15 × 108 × 54 / 5 }

= Rs. { 3 × 108 × 54 }

= Rs. 17,496

Hence, the amount compounded annually for 2 years is Rs. 17,496.

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