Question

What will be the amount if a sum of rs 8000 is placed at compound interest for 2 years while rate of interest in the first ,second year is 2,5 percent respectively?

Answer 1

if a sum of rs 8000 is placed at compound interest for 2 years while rate of interest in the first ,second year is 2,5 percent respectively


the amount is rs 2356

Answer 2

The amount of interest in first year will be:

P×R×T/100

=8000×2×1÷ 100

=₹160

So,the principal of the second year will be = 8000+160= ₹8160 [because it is a complex interest]

The amount of interest in second year will be:

P×R×T÷100

= 8160×5×1÷100

=₹408

So the principal amount after five years will be =8160+408=₹ 8568 (answer)