Sangeetha borrowed Rs. 8,000 from Alex for 2 years at 121/2% per annum. What interest did Sangeetha pay to Alex if the interest is compounded annually?
Rate of interest – 12.5% P.A
Principle – 8,000
Time – 2 years
Amount = ![]()
= ![]()
= 10,125
Compound interest = Amount – principle
= 10,125 – 8,000 = 2,125
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