Question

What will be the amount on 500 at 8 p.c.p.a. after 2 years?
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Answer 1

Answer:

$i = \frac{p \times r \times n}{100}$

$i = \frac{500 \times 8 \times 2}{100}$

$i = \frac{8000}{100}$

$i = 80$

$amount = principal + intrest$

$amount = 500 + 80 = 580$

Answer 2

Answer:

(1) Here, P = ₹ 2000; R = 5 % ; N = 2 years

A=P (1+R/100)N

=2000 (1+5/1000)2

=2000 (105/1000)2

=2000 (21/20)2

=2205 Rupees

Compound Interest after 2 years,

I = Amount - Interest

= 2205 - 2000

= 205

Hence, Amount = 2205 Rupees and compound Interest = 205 Rupees.