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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 E - Mathematics

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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.

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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
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APPEARS IN

Selina Concise Mathematics Class 8 ICSE
Chapter 9 Interest
Exercise 9 (C) | Q 2 | Page 114
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