Question

What is the compounded annual interest for a loan amount of800000 at 10% per annum for a period of 2 year​

Answer 1

$\huge\underline\mathrm{SOLUTION:-}$

AnsWer:

• The Amount Interest = 968000
• The Compound Interest = 168000

Given:

• P = 800000
• R = 20%
• N = 2 years

Need To Find:

• Amount Interest = ?
• Compound Interest = ?

Explanation:

Case 1:

• Find the amount Interest = ?

Formula used here:

• A = P × (1 + r/100)^n

Putting the values according to the given formula:

➠ A = 800000 × (1 + 10/100)²

➠ 800000 × (100 + 10/100)²

➠ 800000 × (110/100)²

➠ 800000 × 110/100 × 110/100

➠ 800000 × 12100/10000

➠ 8000 × 121

➠ ${\boxed{\sf\green{968000}}}$

• Hence, the amount Interest is 968000.

$\setlength{\unitlength}{1.0 cm}}\begin{picture}(12,4)\thicklines\put(1,1){\line(1,0){6.5}}\put(1,1.1){\line(1,0){6.5}}\end{picture}$

Case 2:

• Find the compound interest = ?

Formula used here:

• Compound Interest = A - P

Putting the values according to the given formula:

➠ 968000 - 800000

➠ ${\boxed{\sf\green{168000}}}$

• Hence, the compound interest is 168000.

$\setlength{\unitlength}{1.0 cm}}\begin{picture}(12,4)\thicklines\put(1,1){\line(1,0){6.5}}\put(1,1.1){\line(1,0){6.5}}\end{picture}$

HeRe,

• P is used for Principal.
• R is used for Rate.
• N is used for Time.
• A is used for Amount.

$\setlength{\unitlength}{1.0 cm}}\begin{picture}(12,4)\thicklines\put(1,1){\line(1,0){6.5}}\put(1,1.1){\line(1,0){6.5}}\end{picture}$

Answer 2

SOLUTION :-

Amount Interest = 968000

Compound Interest = 168000

Given:

P = 800000

R = 20%

N = 2 years

To Find :-

Amount Interest = ?

Compound Interest = ?

Explanation --

STEP 1:-

Find the amount Interest = ?

Formula :-

A = P × (1 + r/100)^n

After putting the values according to the given formula we get :-

=> A = 800000 × (1 + 10/100)²

=>800000 × (100 + 10/100)²

=> 800000 × (110/100)²

=> 800000 × 110/100 × 110/100

=> 800000 × 12100/10000

=> 8000 × 121

=> 968000.

Hence, the amount Interest is 968000.

Step 2 :-

Find the compound interest = ?

Formula :-

Compound Interest = A - P

Putting the values according to the given formula:

=> 968000 - 800000

=> 168000

Answer :- Hence, the compound interest is 168000.

Abbreviations used :-

P :- Principal.

R :- Rate.

N :- Time.

A :- Amount.