Question

If the Principal is Rs50000 and 8% is the rate of interest per annum compound annually
a) Find the interest earned in First year
b) What is the Principal for 2nd Year
c) What is the interest earned in second Year
d) Is First year interest same as second Year interest
e) What will be the total interest earned for 2years if it were simple interest per annum.​

Answer 1

Step-by-step explanation:

Here,

P=Rs50000, I=8%

a) int. on Rs50000 on first year=Rs 5000×8×1÷100

=Rs4000

b)The principal for 2nd year=Rs50000+Rs4000

=Rs54000

c)int. on Rs54000 on second year=Rs54000×8×2÷100

=Rs8640

d)No, the first year int. is not equal to second year interest.

e) r=I÷P×t

=8÷Rs50000×2

=Rs12500