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

User Vikingosegundo
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1 Answer

18 votes
18 votes

Answer:

Explanation:

Amount = Rs 8820

Compound Interest = Rs 820.

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.

User Stefan Anca
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2.9k points