Question

A man borrowed Rs. $20,000$ for $2$ years at $8\%$ per year compound interest. Calculate the interest of the first year.

Answer 1

Simple Interest $I=\frac{PNR}{100}$
Here for first year,
$P=Rs20,000$
$N=1year$
$R=8$ %
So, Interest at the end of 1st year $I=\frac{20,000\times 1\times 8}{100}=Rs1,600$