Question

Find the compound interest paid when a sum of Rs 10000 is invested for 2 years and 8 % per annum compounded annually

Answer 1

A=P(1+r/n)^nt

Where, P = principal amount (initial investment)
r = annual nominal interest rate (as a decimal)
n = number of times the interest is compounded per year
t = number of years

P = 10000
r = 8/100
n = 1
t = 2

A = 10000(1 + 8/(100×1))^2 = 11664
C I = A - P = 11664-10000 = Rs 1664

the answer is Rs 1664