Advertisement Remove all ads
Advertisement Remove all ads
Sum
A man borrowed Rs. 20,000 for 2 years at 8% per year compound interest. Calculate :
(i) the interest of the first year.
(ii) the interest of the second year.
(iii) the final amount at the end of the second year.
(iv) the compound interest of two years.
Advertisement Remove all ads
Solution
Here Principal (P) =Rs.20,000, Time = 1 year
Rate = 8%
(i) ∴ The interest of the first year =`(20,000xx8xx1)/100`
= Rs.1600
(ii) ∴ Amount after one year
i.e. Principal for second year = Rs.20,000 + Rs.1,600 = Rs.21,600
∴ Interest for second year =`(21,600xx8xx1)/100`
= 216 × 8
= Rs.1728
(iii) Final amount at the end of second year
= Rs. (21,600 + 1728) = Rs.23,328
(iv) Interest of two years = Rs.23,328 − Rs.20,000 = Rs.3,328
Concept: Concept of Compound Interest
Is there an error in this question or solution?
Advertisement Remove all ads
APPEARS IN
Advertisement Remove all ads