Question

Let us write by calculating the amount on Rs 80000 for 2 years at the rate of 5% compound interest per annum ?​

Answer 1

Solution :

Here , the principal amount is Rs. 80,000

The time period for the investment is 2 years .

Rate of interest : 5% per annum .

The interest is compounded annually ( compound interest )

We know that :

For any compound interest scenario ;

A = P ( 1 + r/100 )^n

Where

• A is the amount

• P is the principal

• R is the rate of interest

• n is the time period

Here , substituting the given values '

=> Amount = 80,000 × [ 1 + 5/100 ]²

=> 80,000 × [ 1 + 1/20 ]²

=> 80,000 × [ 21/20 ] × [ 21/20]

=> 80,000 × 441/400

=> 200 × 441

=> 88,200

This is the required amount .

The compound interest is Rs. 8,200

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Answer 2

Answer:

Given :-

• A sum of Rs 80000 for 2 years at the rate of 5% compound interest per annum.

To Find :-

• What is the amount.

Formula Used :-

To find amount we know that,

$\boxed{\bold{\large{A\: =\: P\bigg(1 + \dfrac{r}{100}\bigg)^{n}}}}$

where,

• A = Amount
• P = Principal
• r = Rate of Interest
• n = Time

Solution :-

Given :

• Principal = Rs 80000
• Rate of Interest = 5%
• Time = 2 years

According to the question by using the formula we get,

⇒ $\sf A\: =\: 80000\bigg(1 + \dfrac{5}{100}\bigg)^{2}$

⇒ $\sf A\: =\: 80000\bigg(\dfrac{105}{100}\bigg)^{2}$

⇒ $\sf A\: =\: 80000 \times \dfrac{105}{100} \times \dfrac{105}{100}$

⇒ $\sf A\: =\: \dfrac{882000000}{10000}$

⇒ $\sf A\: =\: \dfrac{\cancel{882000000}}{\cancel{10000}}$

➠ $\sf\red{A\: =\: Rs\: 88200}$

$\therefore$ The amount is Rs 88200 .