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8,000 is lent at 5% compound interest per year for 2 years. Find the amount |
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Answer»
ANSWER Principal for the first year = Rs.8000, Rate = 5% PER annum, T = 1 year Interest for the first year = = 100 P×R×T
=Rs.[ 100 8000×5×1
]=Rs.400 ∴ Amount at the end of the first year = Rs. (8000 + 400) = Rs. 8400 Now principal for the second year = Rs.8400 Interest for the second year = 100 P×R×T
=Rs.[ 100 8400×5×1
]=Rs.420 ∴ Amount at the end of the second year = Rs. (8400 + 420) =Rs.8820 Interest for the third year = 100 P×R×T
=Rs. 100 8820×5×1
=Rs.441 ∴ Amount at the end of the third year = Rs.(8820 + 441) = Rs. 9261 Now we KNOW that TOTAL C.I. = Amount - Principal = Rs. (9261 - 8000) = Rs. 1261 we can also find the C.I. as follows Total C.I. = Interest for the first year + Interest for the second year + Interest for third year = Rs. (400 + 420 + 441) = Rs.1261
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