Home › IBPS Clerk › Quantitative Aptitude › Simple & Compound Interest › Find the compound interest on Rs 8,000 for 2 yea…
Find the compound interest on Rs 8,000 for 2 years at 5 per cent compounded annually.
ARs 820
BRs 800
CRs 840
DRs 810
Answer & Solution
Correct answer: A. Rs 820
1. Year 1 interest = (5/100) x 8000 = Rs 400.
2. Principal for year 2 = 8000 + 400 = Rs 8,400.
3. Year 2 interest = (5/100) x 8400 = Rs 420.
4. Compound interest = 400 + 420 = Rs 820.
5. Simple interest here would be Rs 800, so compounding adds Rs 20.
_Source: NCERT Class 8 Maths Ch7 'Comparing Quantities', TRY THESE after Example 8_
Related questions
Another worked compound example used a principal of:A 17 year worked example compounded how many times a year?Cody's account compounded quarterly at what annual rate?Compound interest grows an account faster because more money:A larger worked loan had a payoff amount of:One worked simple interest loan had a payoff of:In another worked loan, the partial payment fell after how many days?The interest portion of that partial payment came to: