Question

The compound interest on₹ 8000 at 10% p.a for 2 years is:​

Answer 1

Step-by-step explanation:

Interest rate per conversion period,

2

10%

=5%=0.05

Principal(P)=Rs.8,000

Amount(A

n

)=Rs.8,820

A

n

=P(I+i)n

8,820=8,000(1+0.05)

n

8,820/8,000=(1+0.05)

n

1.1025=(1.05)

n

(1.05)2=(1.05)

n

n=2; Hence number of conversion period is 2 and the required time =

2

n

=

2

2

=1 year