Question

Let us write by calculating the amount on Rs 80000 for 2½ years at the rate of 5% compound interest per annum.​

Answer 1

Answer:

amount on Rs 80000 for 2½ years at the rate of 5% compound interest

Answer 2

Answer:

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Step-by-step explanation:

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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