Compound Interest Calculation for Rs. 8000
Problem Statement
The question asks to find the compound interest (CI) on a principal amount (P) of Rs. 8000 for a duration (T) of 2 years at an annual interest rate (R) of 10%.
Compound Interest Calculation
The formula to calculate the final amount (A) with compound interest is:
$ A = P \left(1 + \frac{R}{100}\right)^T $Where:
- P = Principal Amount = Rs. 8000
- R = Annual Interest Rate = 10%
- T = Time Period in Years = 2 years
Step 1: Calculate the Amount (A)
Substitute the given values into the formula:
$ A = 8000 \left(1 + \frac{10}{100}\right)^2 $Simplify the expression inside the parenthesis:
$ A = 8000 \left(1 + 0.1\right)^2 $ $ A = 8000 (1.1)^2 $Calculate the square of 1.1:
$ A = 8000 (1.21) $Calculate the final amount:
$ A = 9680 $So, the amount after 2 years is Rs. 9680.
Step 2: Calculate the Compound Interest (CI)
The compound interest is the difference between the final amount (A) and the principal amount (P):
$ CI = A - P $Substitute the values:
$ CI = 9680 - 8000 $ $ CI = 1680 $Conclusion
The compound interest on Rs. 8000 for 2 years at 10% per annum is Rs. 1680.
This matches Option B.
Similar Questions
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Important Questions from Compound Interest
The certain sum amounts to Rs. 9,982.50 in \(2\frac{1}{2}\) years at 12% p.a., interest compounded 10-monthly. The sum (in Rs.) is:
The difference between the simple interest and the compound interest compounded annually on a certain sum of money for 2 years at a rate of 8% per annum is Rs. 16.80. Find the principle amount.
If a sum of ₹ 2000 is lent at 10% p.a. compound interest, what is the interest for the second year?
A sum becomes 5 times of itself in 3 years. at compound interest (interest is compounded annually). In how many years. will the sum becomes 125 times of itself?
If the compound interest on a certain sum of money for two years at 9% p.a. is Rs. 3,762, then the sum is:
