Question

. I borrowed ₹8000 from a bank. If the rate of interest is 10% per annum, find the amount that I would pay after 2 years if the interest is compounded annually.​

Answer 1

Formula for simple interest:
I=P*R*T

I- Interest
P- Principal amount
R- Rate
T- Time

8000 * 0.10 * 2 = ₹ 1600
This answer is for simple interest.

8000+1600 = ₹ 9600
This is total interest with the amount.

Answer 2

Forst first year interest is 10% of 8000 which is 800

So total is 8800

For second year, the interest is 10% of 8800 which is 880.

Total 9680