Question

Question 79(i)

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

Answer 1

Given, principal (P)= Rs. 40000
Rate of interest (R) = 8% per annum
Compound interest for one year,
We know that,
$A=P{(1+\frac{R}{100})}^n=40000{(1+\frac{8}{100})}^1[\because n=1yr]=40000\times \frac{108}{100}\therefore Amount,A=400\times 108=Rs.43200$
$\therefore$ Compound interest, CI = A - P = Rs. 43200 - Rs. 40000 = Rs. 3200