Question

Find the difference between compound interest on Rs. 8,000 in 2 years and at 5% per annum.

Answer 1

Principal = 8000
rate = 5%
time = 2 years ( 2 terms)

$Amount=P(1+\frac{r}{100}{)}^n=8000(1+\frac{5}{100}{)}^2=8000\times (1+\frac{1}{20}{)}^2=8000\times (\frac{21}{20}{)}^2=8000\times \frac{441}{400}=20\times 441=8820\therefore CI=Amount-Principal=8820-8000=820$