Q3 of 48 Page 118

Find the amount and the compound interest on Rs. 8000 at 5% per annum, for 2 years compounded annually.

Principal (P) = Rs. 8000

Time period (n) = 2


Rate of interest (R) = 5%




= 8000×1.052


= 8820


∴ Amount = Rs. 8820




= (8000×1.052)-8000


= 8820-8000


= 820


∴ Compound Interest = Rs. 820


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(b) her equal monthly repayments.