Question 13 Marks
Find Cl on a sum of ₹ 8000 for 2 yr at 5% per annum compounded annually.
Answer
View full question & answer→Given, principal $(\text{P})=$ ₹ $8000$, time $(n)=2 y r$, rate $( R )=5 \%$
We know that
$\begin{aligned}\text{Amount }(A) & =P\left(1+\frac{R}{100}\right)^n=8000\left(1+\frac{5}{100}\right)^2 \\ & =8000\left(\frac{100+5}{100}\right)^2 \\ & =8000\left(\frac{105}{100}\right)^2 \\ & =8000 \times \frac{21}{20} \times \frac{21}{20} \\ & =\frac{80 \times 21 \times 21}{2 \times 2}\end{aligned}$
$=20 \times 21 \times 21=$ ₹ $8820$
$\therefore$ Compound Interest (CI)
$=$ Amount (A) $-$ Principal (P)
$=$ ₹ $(8820-8000)$
$=$ ₹ $820$
Hence, the compound interest is ₹ 820.
Alternate Method
Principal for the Ist year,
$P_1=$ ₹ $8000, R=5 \%$ and $T=2 yr$
$\therefore \quad SI = SI$ at $5 \%$ per annum for Ist year
$=\frac{8000 \times 5 \times 1}{100}=$ ₹ $400\qquad\quad$ $\left[\because SI =\frac{P \times R \times T}{100}\right]$
Amount at the end of Ist year
$=$ Principal $+$ Simple interest
$=$ ₹ $8000+$ ₹ $400=$ ₹ $8400$
Now, principal for the IInd year
$=$ Amount at the end of Ist year
$=$ ₹ $8400$
$SI _2= SI$ at $5 \%$ per annum for IInd year
$=$ ₹ $\frac{8400 \times 5 \times 1}{100}=$ ₹ $(84 \times 5)=$ ₹ $420$
Amount at the end of IInd year
$=$ Amount at the end of Ist year $+ SI _2$
$=$ ₹ $(8400+420)=$ ₹ $8820$
$\therefore$ Compound Interest $( CI )=$ Amount $(A)-\operatorname{Principal}(P)$
$=$ ₹ $(8820-8000)=$ ₹ $820$
Hence, the compound interest is ₹ $820$.
We know that
$\begin{aligned}\text{Amount }(A) & =P\left(1+\frac{R}{100}\right)^n=8000\left(1+\frac{5}{100}\right)^2 \\ & =8000\left(\frac{100+5}{100}\right)^2 \\ & =8000\left(\frac{105}{100}\right)^2 \\ & =8000 \times \frac{21}{20} \times \frac{21}{20} \\ & =\frac{80 \times 21 \times 21}{2 \times 2}\end{aligned}$
$=20 \times 21 \times 21=$ ₹ $8820$
$\therefore$ Compound Interest (CI)
$=$ Amount (A) $-$ Principal (P)
$=$ ₹ $(8820-8000)$
$=$ ₹ $820$
Hence, the compound interest is ₹ 820.
Alternate Method
Principal for the Ist year,
$P_1=$ ₹ $8000, R=5 \%$ and $T=2 yr$
$\therefore \quad SI = SI$ at $5 \%$ per annum for Ist year
$=\frac{8000 \times 5 \times 1}{100}=$ ₹ $400\qquad\quad$ $\left[\because SI =\frac{P \times R \times T}{100}\right]$
Amount at the end of Ist year
$=$ Principal $+$ Simple interest
$=$ ₹ $8000+$ ₹ $400=$ ₹ $8400$
Now, principal for the IInd year
$=$ Amount at the end of Ist year
$=$ ₹ $8400$
$SI _2= SI$ at $5 \%$ per annum for IInd year
$=$ ₹ $\frac{8400 \times 5 \times 1}{100}=$ ₹ $(84 \times 5)=$ ₹ $420$
Amount at the end of IInd year
$=$ Amount at the end of Ist year $+ SI _2$
$=$ ₹ $(8400+420)=$ ₹ $8820$
$\therefore$ Compound Interest $( CI )=$ Amount $(A)-\operatorname{Principal}(P)$
$=$ ₹ $(8820-8000)=$ ₹ $820$
Hence, the compound interest is ₹ $820$.