Question

Question 79(iv)

Given, the principal = Rs. 40000, rate of interest = 8% per annum compound annually. Find Amount if period is two year.

Answer 1

Given, principal (P)= Rs. 40000
Rate of interest (R) = 8% per annum
Now, if period i.e. time (n) = 2 yr
Principal = Rs. 40000 and rate = 8% per annum
$\because A=P(1+\frac{R}{100})\Rightarrow A=40000{(1+\frac{8}{100})}^2=40000\times \frac{108}{100}\times \frac{108}{100}=Rs.46656$
$\therefore$ Amount, A = Rs. 46656