Find the amount of ₹ 6,250 at 8% p.a. compounded annually for 2 years. Also, find the compound interest..
Answers
Answer: Amount = ₹7290
C.I = ₹1040
Step-by-step explanation: It can be done in 2 ways. let me do from both ways
First way: C.I on first year = P × T × R
100
= 6250 × 1 × 8
100
= ₹500
Amount = ₹6250 + ₹500 = ₹6750 = P of second year
C.I on second year = P × R ×T
100
= 6750 × 8 × 1
100
= ₹540
Amount at the end of 2 years = ₹6750 + ₹540 = ₹7290
C.I at the end of 2 years = ₹7920 - ₹6250 = ₹1040
Second Way : Amount = P ( 1 + R/100 )²
= 6250 ( 1 + 8/100 )²
= 6250 ( 1 + 2/25 )²
= 6250 × 27/25 × 27/25
= ₹7290
C.I = Amount - Principal
= ₹7290 - ₹6250
= ₹1040
Amount = P ( 1 + R/100 )²
= 6250 ( 1 + 8/100 )²
= 6250 ( 1 + 2/25 )²
= 6250 × 27/25 × 27/25
= ₹7290
C.I = Amount - Principal
= ₹7290 - ₹6250
= ₹1040