Find the amount and the compound interest on ₹ 8000.

Find the amount and the compound interest on ₹ 8000 for 4 years at 10% per annum interest reckoned yearly.

Solution:

It is given that
Principal (P) = ₹ 8000
Rate of interest (r) = 10% p.a.
Period (n) = 4 years
We know that
Amount = P (1 + r/100)n
Substituting the values
= 8000 (1 + 10/100)4
By further calculation
= 8000 × 11/10 × 11/10 × 11/10 × 11/10
= ₹ 11712.80
Here
CI = A – P
Substituting the values
= 11712.80 – 8000
= ₹ 3712.80

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