Maria deposited Rs 80,000 in a bank for 2 years at the rate 5% per ann – InterviewSolution

1.

Maria deposited Rs 80,000 in a bank for 2 years at the rate 5% per annumcompounded annually. Find the compound interest after 2 years?

Answer»

Answer:

$\bold\green{Compound\:<klux>INTEREST</klux> }$ = $\bold{Rs.8,200}$

Step-by-step EXPLANATION:

$\bf\red{Given}\begin{cases}\sf\green{Principal(P) = Rs.80,000}\\\sf\orange{Time(n) = 2\:years}\\\sf\purple{Rate\:of\:interest(r) = 5\%}\\\sf\red{Compound\:interst(CI) = ?}\end{cases}$

We know formula of Compound interest:-

${\boxed{\bold\red{CI = P{(1+r)}^{n} - P}}}$

SUBSTITUTING values:-

$\hookrightarrow\sf CI = 80,000{(1+5\%)}^{2} - 80,000 \\\\\hookrightarrow\sf CI = 80,000 {(1+\dfrac{5}{100} )}^{2} - 80,000 \\\\\hookrightarrow\sf CI = 80,000 {(\dfrac{100+5}{100})}^{2} - 80,000 \\\\\hookrightarrow\sf CI = 80,000 {(\dfrac{105}{100})}^{2} - 80,000 \\\\\hookrightarrow\sf CI = 80,000 \times {(1.05)}^{2} - 80,000 \\\\\hookrightarrow\sf CI = 80,000 \times 1.1025 - 80,000 \\\\\hookrightarrow\sf CI = 88,200 - 80,000 \\\\\hookrightarrow\huge{\boxed{\sf\green{CI = Rs.8,200 }}}$

$\therefore\bold{\underline{Compound\:interest = Rs.8,200}}$

Discussion

No Comment Found

Related InterviewSolutions