Question

Find the amount to be paid after two years when the sum borrowed is Rs 8000 at 2.5% p.a

Answer 1

Step-by-step explanation:

We have,

P=Rs.8000,T=2 years,R=5%

We know that,

SI=

100

P×R×T

or, SI=

100

8000×5×2

or, SI=Rs.800

We know that,

A=CI+P=P(1+

100

R

)

T

or, CI+8000=8000(1+

100

5

)

2

or, CI+8000=8000(1+

20

1

)

2

or, CI+8000=8000(

20

21

)

2

or, CI+8000=8820

or, CI=Rs.820

Therefore, the required difference

CI−SI=820−800

=Rs.20