What will be the amount and compound interest, if $R s . 5000$ is invested at $8 %$ per annum for $2$ years?

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Solution

Given: $P = 5000, R = 8$ %, $T = 2$ years
$A m o u n t = P \times {(1 + \frac{R}{100})}^{T} = 5000 \times {(1 + \frac{8}{100})}^{2} = 5000 \times {(1.08)}^{2} = 5832$
$C I = A m o u n t - P r i n c i p l e = 5832 - 5000 = 832$

$∴$ Amount is $R s .5832$ and compound interest is $R s .832$

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