Question

find the CI on rupees 5000 at 8% per annum for 2 years

Answer 1

principle=5000
so compound interest for 1st year =5000*8*1/100=400
so new principle=5000+400=5400
C.I. for 2nd year=5400*10*1/100=540
so principle=5400+540=5940
C.I. for 3rd year=5490*12*1/100=712.8
so total compound interest in 3 years = 400+540+712.8=1652.8

Hope This helps :)