Question

A sum of $Rs.8,000$ is invested for $2$ years at $10\%$ per annum compound interest. Calculate final amount at the end of the second year.

Answer 1

Simple Interest $I=\frac{PNR}{100}$
For the first year,
$P=Rs.8,000$
$N=1year$
$R=10$ %
So, Interest at the end of fist year $I=\frac{8,000\times 1\times 10}{100}=Rs800$
For second year,
$P=Rs.8000+Rs.800=Rs.8800$
$N=1year$
$R=10$ %
$I=\frac{8800\times 1\times 10}{100}=Rs.880$
And Amount $=Rs.8800+Rs.880=Rs.9680$