Given the principal = Rs 40,000, rate of interest = 8% p.a. compounded annually. Find
(a) Interest if period is one year
(b) Principal for 2nd year
(c) Interest for 2nd year
(d) Amount if period is 2 years

Solution:

Since Principal (P) = Rs. 40000

r (rate of interest) = 8% compounded annually

And the applicable compound interest formula is

A = P(1 + r/100)ⁿ

A = Amount

N = number of years

(a) Interest for first year

A = 40000(1 + 8/100)

= 40000 × 1.08

= Rs. 43200

Interest if time period is one year = Rs. 43200 - Rs. 40000 = Rs. 3200

(b) Principal for second year = Rs. 43200

(c) Interest for second Year

A = P(1 + 8/100)

= 43200(1.08)

= Rs. 46656

Interest = Rs. 46656 - Rs. 43200

= Rs. 3456

(d) Amount after two years = Rs. 46656

✦ Try This: Given the principal = Rs 60,000, rate of interest = 6% p.a. compounded annually. Find (a) Interest if period is one year. (b) Principal for 2nd year. (c) Interest for 2nd year. (d) Amount if period is 2 years.

☛ Also Check: NCERT Solutions for Class 8 Maths Chapter 8

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NCERT Exemplar Class 8 Maths Chapter 9 Problem 79

Given the principal = Rs 40,000, rate of interest = 8% p.a. compounded annually. Find (a) Interest if period is one year, (b) Principal for 2nd year, (c) Interest for 2nd year, (d) Amount if period is 2 years

Summary:

Given the principal = Rs 40,000, rate of interest = 8% p.a. compounded annually. (a) Interest if period is one year = Rs. 3200, (b) Principal for 2nd year = Rs. 43200, (c) Interest for 2nd year = Rs. 3456, (d) Amount if period is 2 years = Rs. 46656

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