find the compound interest on sum of R.s 8000 for 2 years at 5% per anum compounded annually
Share
find the compound interest on sum of R.s 8000 for 2 years at 5% per anum compounded annually
Sign Up to our social questions and Answers Engine to ask questions, answer people’s questions, and connect with other people.
Login to our social questions & Answers Engine to ask questions answer people’s questions & connect with other people.
Verified answer
Principal = ₹8000
Time = 2 years
Rate = 5%
Compound interest
At first we will find Amount
Amount = P(1 + R/100)ⁿ
P is the Principal
R is the Rate
N is the time
Amount = 8000(1+5/100)²
Amount = 8000(105/100)²
Amount = 8000(21/20)²
Amount = 8000 × 21/20× 21/20
Amount = (8000 × 21 × 21)/(20 × 20)
Amount =(80 × 21 × 21)/4
Amount = 8820
Now,
Finding compound interest
Compound interest = Amount - Principal
Compound interest = 8820 - 8000