Question

Find the compound interest on Rs. 4000 for 2 years at the rate of 8% p.a.
compounded annually.​

Answer 1

Step-by-step explanation:

For first year;

P=4000

R=8%p.a.

T=1 year

C.I.=P*R*T/100

=4000*8*1/100

=320

Amount at the end of first year=

Principal of the first year+Interest of the first year

=4000+320

=4320

For second year;

P=4320. (Amount at the end of first year)

R=8%p a.

T=1year

C.I. of the second year

=4320*8*1/100

=345.6

So the compound interest for 2 years on rupees 4000 will be 345.6 and the amount at the end of first year wil be 4665.6.