Question

why pencil is bent into water

Answer 1

thats a illusion. it looks bent because of refraction.refraction is the bending of light when it goes from one medium into another.
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Answer 2

due to refraction of light, when light travell through different medium according to their density it changes it's direction, in case of pansil let the pencil be the beam of light then when light travell through air it has lesser density as soon as it strike the water surface it bend and when it comes out it follows it's previous path so it is appears crooked............ Hope it's helpful......... mark me as a brain list