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.