Question

Find the amount of the compound interest on Rs. $8000$ at $5\%$ per annum for $2$ years.

Answer 1

$\Rightarrow$ Compound interest $(C.I)=P[{(1+\frac{r}{100})}^t-1]$

P$=$ Principal r$=$ rate, t$=$ time

$\Rightarrow$ C.I. $=8000[{(1+\frac{5}{100})}^2-1]$

$=8000[\frac{25}{1000}+\frac{10}{100}]=8000\left[\frac{25+1000}{10000}\right]$

$\Rightarrow C.I=\frac{8}{10}\left[1025\right]=14.820$.