Question

Navin borrowed 8000 at the rate of 10 p.c.p.a. to find compound interest after 2 years .​

Answer 1

Given :

• Principal (P) = Rs.8000

• Rate (R) = 10%

• Time (n) = 2 years

To Find :

• Compound interest

Solution :

✬ Here in the Question we are given Principal, rate of intrerst and time is given. We know that formula of Amount is P (1 + R/100)ⁿ and compound interest is Amount - Principal. By Putting the values in the formula we can easily find the Compound interest.

Amount = P (1 + R/100)ⁿ

➛ Amount = 8000 (1 + 10/100)²

➛ Amount = 8000 × 110/100 × 110/100

➛ Amount = 8 × 110 × 11

➛ Amount = 880 × 11

➛ Amount = 9680

Now, Compound Interest

➛ C.I = Amount - Principal

➛ C.I = 9680 - 8000

➛ C.I = 1680

∴ Compound interest is Rs. 1680

Answer 2

Given :

• Principal (P) = Rs 8000
• Rate (R) = 10% p.a
• Time (T) = 2 years

To Find :

• Compound interest

Solution :

We know that,

⠀⠀⠀⠀⠀⠀★⠀C.I. = P(1 + R/100)ᵀ - P

where,

• P = Principal
• R = Rate
• C.I = Compound Interest
• T = Time

⟿ C.I. = 8000(1 + 10/100)² - 8000

⟿ C.I. = 8000(110/100)² - 8000

⟿ C.I. = 8000(1.10)² - 8000

⟿ C.I. = 8000 × 1.10 × 1.10 - 8000

⟿ C.I. = 8000 × 1.21 - 8000

⟿ C.I. = 9680 - 8000

⟿ C.I. = Rs 1680

⛬ Compound Interest = Rs 1680

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