Naman borrowed 820 from a financing company for 2 years at 5% per annu

1.	Naman borrowed 820 from a financing company for 2 years at 5% per annum. Calculate thecompound interest payable atthe end of the term
Answer» For compound interestA = P(1 + R/100)^n Given P = 8200, R = 5%, n = 2, A =? Then we get,A = 8200(1 + 5/100)^2 = 8200(21/20)^2 = 8200(1.05)^2 = 8200(1.051.05) = 82001.10 = 9020 Therefore Naman has to pay Rs. 9020 after 2 years

Naman borrowed 820 from a financing company for 2 years at 5% per annum. Calculate thecompound interest payable atthe end of the term

Answer»

For compound interestA = P(1 + R/100)^n

Given P = 8200, R = 5%, n = 2, A =?

Then we get,A = 8200(1 + 5/100)^2 = 8200(21/20)^2 = 8200(1.05)^2 = 8200(1.05*1.05) = 8200*1.10 = 9020

Therefore Naman has to pay Rs. 9020 after 2 years