Question

rs 8000 is lead at 5% compound interest per year for 2 year. find the amount and compound interest

Answer 1

Given Principal Amount= P= 8000

Rates of interest Per annum= i =5%

Time= n =2years

Compound Interest = P[ (1+i)^n - 1]

=8000[ (1+5/100)^2 - 1]

=8000[(1 + 0.05)^2 -1]

=8000[ (1.05)^2 - 1]

=8000[1.1025 - 1]

=8000[0.1025]

=820 is the Compound Interest...

Then compounded Amount = Principal Amount + Compound Interest

=8000 + 820 =8820 is the Compounded amount