Question
Find the compound interest on Rs. 8000 at 10% per annum
for 2 years, compounded annually.Solution
Amount A = P(1 + r/100)² = 8000 × (1 + 10/100)² = 8000 × (1.10)² = 8000 × 1.21 = 9680 Compound interest = A − P = 9680 − 8000 = 1680
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