Question

Find the amount and the compound interest on $8000 at 5% per annum for 2 years?

Answer 1

Answer:

Step-by-step explanation:

Amount = Rs 8820

Compound Interest = Rs 820.

Step-by-step explanation:

We have to find the amount and the compound interest on Rs. 8000 at 5% per annum for 2 years compounded annually​.

Let the Principal sum of money = P

Rate of Interest = R

Time Period = T

Amount of money = A

As we know that Amount formula for compounded annually is given by;

             Amount =  

                                     Or

                       

                     

Now, we are given with P = Rs 8000 , R = 5% p.a. and T = 2 years; we have to find the amount,i.e;

                     

                      A =

                      A =

                      A = Rs 8820

That means Amount = Rs 8820

Also, Compound Interest formula is given by;

         Amount = Principal + Compound Interest

        Compound Interest = Amount - Principal

                                          = Rs (8820 - 8000)

                                          = Rs 820

Therefore, amount and the compound interest on Rs 8000 at 5% per annum for 2 years compounded annually​ are Rs 8820 and Rs 820 respectively.