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
At what rate percent per annum will Rs. 7200 amount to Rs. 7938 in one year, if interest is compounded half yearly?
What is the compound interest (in Rs.) on a sum of Rs. 8192 for \(1 \frac{1}{4}\) years at 15% per annum, if interest is compounded 5-monthly ?
What is the difference (in Rs.) between the interests on Rs. 50,000 for one year at 8% per annum compounded half yearly and yearly?
A sum of money becomes Rs. 11,880 after 4 years and Rs. 17,820 after 6 years on compound interest, if the interest is compounded annually. What is the half of the sum (in Rs.)?
A sum invested at compound interest amounts to Rs. 7,800 in 3 years and Rs. 11,232 in 5 years. What is the rate per cent?
