Question

The compound interest on Rs 5000 at 8% p.a for 2 years, compounded annually is ​

Answer 1

Step-by-step explanation:

I1 = (5000×8×1)/100  

I1 = 50×8  

I1 = Rs 400

Amount = 5000+400=5400  

Principal of second year = Rs 5400

I2 = (5400×8×1)/100

I2 = 54×8

I2 = Rs 432

Amount = 5400 +432

Amount = 5832

Compound interest = 5832 - 5000

Compound interest = Rs 832

I hope this will help you