What would be the compound interest on an amount of Rs 8000/- at the rate of 10% per annum after 2 years.
Answers
Answer:
Compound interest = 1,680/- Rs.
Step-by-step explanation:
Principal (P) = 8,000/- Rs.
Rate (R) = 10%
Time (n) = 2 Years
Compound Interest = Amount - Principal
Amount = P × (1/1 + R/100)ⁿ
= 8,000 × (1/1 + 10/100)²
= 8,000 × (1 × 100/1 × 100 + 10/100)²
= 8,000 × (100/100 + 10/100)²
= 8,000 × (110/100)²
= 8,000 × 110/100 × 110/100
= 96,800,000/10,000
= 9,680/- Rs.
Compound Interest = Amount - Principal
= 9,680 - 8000
= 1,680/- Rs.