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Compute the Amount and the Compound Interest In the Following by Using the Formulae When: Principal = Rs 5000, Rate = 10 Paise per Rupee per Annum, Time = 2 Years - Mathematics

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Question

Compute the amount and the compound interest in  the following by using the formulae when:
Principal = Rs 5000, Rate = 10 paise per rupee per annum, Time = 2 years

Sum
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Solution

\[\text{ Applying the rule A = P }\left( 1 + \frac{R}{100} \right)^n \text{ on the given situations, we get: }\]

\[A = 5, 000 \left( 1 + \frac{10}{100} \right)^2 \]
\[ = 5, 000 \left( 1 . 10 \right)^2 \]
= Rs 6, 050
Now, 
CI = A - P
 = Rs 6, 050 - Rs 5, 000
 = Rs 1, 050

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Chapter 14: Compound Interest - Exercise 14.2 [Page 14]

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RD Sharma Mathematics [English] Class 8
Chapter 14 Compound Interest
Exercise 14.2 | Q 1.3 | Page 14

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