Answer
Verified
377.1k+ views
Hint: First we have to define what the terms we need to solve the problem are.
This problem is of compound interest.
Simple interest is based on the principal amount of a loan or deposit whereas compound interest is based on the principal amount and the interest that accumulates on its every period.
Formula used:
$A = P \times {(\dfrac{{1 + R}}{{100}})^T}$
Where R is the annual rate of interest, T is number of years, P is the principal amount and
A will be the amount after T years.
Complete step by step solution:
Since we are going to use compound interest formula to solve this problem
That is $A = P \times {(\dfrac{{1 + R}}{{100}})^T}$
Where R is the annual rate of interest, T is number of years, P is the principal amount and
A will be the amount after T years.
As we know the principal amount is Rs.$8000$, the rate of interest is $5$% per annum which is$P = Rs.8000$, $R = $$5$% and $T = 2$years
So, substituting all the values in the compound interest formula we get
Amount = $P \times {(1 + \dfrac{R}{{100}})^T}$
$ \Rightarrow 8000 \times {(1 + \dfrac{5}{{100}})^2}$
Simplifying further we get $ 8000 \times {(1.05)^2}$
$ \Rightarrow 8820$
Hence the amount credited for two years will be equal to Rs. $8820$ and we need to find the compound interest for this amount
Thus, compound interest = Amount – Principal
That is $C.I = A - P$
$C.I = 8820 - 8000 = 820$
Therefore, the amount is $Rs.8820$ and the compound interest is $Rs.820$
Note: Simple interest and compound interest are not the same, Simple interest depends on principal amount of deposited and compound interest depends on interest that accumulate on every period
So, we have to put compound interest formula for this problem and If interest is compounded yearly, then \[n = 1\] ; if semi-annually, then \[n = 2\]; quarterly, then \[n = 4\]; monthly, then \[n = 12\]; weekly, then \[n = 52\]; daily, then \[n = 365\]; and so forth, regardless of the number of years involved.
Also, "t" must be expressed in years, because interest rates are expressed that way.
This problem is of compound interest.
Simple interest is based on the principal amount of a loan or deposit whereas compound interest is based on the principal amount and the interest that accumulates on its every period.
Formula used:
$A = P \times {(\dfrac{{1 + R}}{{100}})^T}$
Where R is the annual rate of interest, T is number of years, P is the principal amount and
A will be the amount after T years.
Complete step by step solution:
Since we are going to use compound interest formula to solve this problem
That is $A = P \times {(\dfrac{{1 + R}}{{100}})^T}$
Where R is the annual rate of interest, T is number of years, P is the principal amount and
A will be the amount after T years.
As we know the principal amount is Rs.$8000$, the rate of interest is $5$% per annum which is$P = Rs.8000$, $R = $$5$% and $T = 2$years
So, substituting all the values in the compound interest formula we get
Amount = $P \times {(1 + \dfrac{R}{{100}})^T}$
$ \Rightarrow 8000 \times {(1 + \dfrac{5}{{100}})^2}$
Simplifying further we get $ 8000 \times {(1.05)^2}$
$ \Rightarrow 8820$
Hence the amount credited for two years will be equal to Rs. $8820$ and we need to find the compound interest for this amount
Thus, compound interest = Amount – Principal
That is $C.I = A - P$
$C.I = 8820 - 8000 = 820$
Therefore, the amount is $Rs.8820$ and the compound interest is $Rs.820$
Note: Simple interest and compound interest are not the same, Simple interest depends on principal amount of deposited and compound interest depends on interest that accumulate on every period
So, we have to put compound interest formula for this problem and If interest is compounded yearly, then \[n = 1\] ; if semi-annually, then \[n = 2\]; quarterly, then \[n = 4\]; monthly, then \[n = 12\]; weekly, then \[n = 52\]; daily, then \[n = 365\]; and so forth, regardless of the number of years involved.
Also, "t" must be expressed in years, because interest rates are expressed that way.
Recently Updated Pages
How many sigma and pi bonds are present in HCequiv class 11 chemistry CBSE
Mark and label the given geoinformation on the outline class 11 social science CBSE
When people say No pun intended what does that mea class 8 english CBSE
Name the states which share their boundary with Indias class 9 social science CBSE
Give an account of the Northern Plains of India class 9 social science CBSE
Change the following sentences into negative and interrogative class 10 english CBSE
Trending doubts
Fill the blanks with the suitable prepositions 1 The class 9 english CBSE
Which are the Top 10 Largest Countries of the World?
Give 10 examples for herbs , shrubs , climbers , creepers
Difference Between Plant Cell and Animal Cell
Difference between Prokaryotic cell and Eukaryotic class 11 biology CBSE
The Equation xxx + 2 is Satisfied when x is Equal to Class 10 Maths
Change the following sentences into negative and interrogative class 10 english CBSE
How do you graph the function fx 4x class 9 maths CBSE
Write a letter to the principal requesting him to grant class 10 english CBSE