2. What interest will you get on a principal of 800 in 2 years, when the rate of interest 10pa, compounded annually

2. What interest will you get on a principal of 800 in 2 years, when t

1.	2. What interest will you get on a principal of 800 in 2 years, when the rate of interest 10pa, compounded annually
Answer» <html><body><p>8000R = <a href="https://interviewquestions.tuteehub.com/tag/10-261113" style="font-weight:bold;" target="_blank" title="Click to know more about 10">10</a>% per/annum: into decimT = 2 yearsPutting <a href="https://interviewquestions.tuteehub.com/tag/value-1442530" style="font-weight:bold;" target="_blank" title="Click to know more about VALUE">VALUE</a> into the formula,Calculating compound interest for 1st <a href="https://interviewquestions.tuteehub.com/tag/year-1464599" style="font-weight:bold;" target="_blank" title="Click to know more about YEAR">YEAR</a>:A = 8,000 (1 + 0.1/1)(1)(1)A = 8,000 (1 + 0.1)(1)A = 8000 (1 + 0.1)A = 8000 (1.1)A = 8800The <a href="https://interviewquestions.tuteehub.com/tag/amount-374803" style="font-weight:bold;" target="_blank" title="Click to know more about AMOUNT">AMOUNT</a> at the end of the 1st year is 8800.Now, let's calculate the compound interest of 2nd year:A = 8,800 (1 + 0.1/1)(1)(1)A = 8,800 (1 + 0.1)(1)A = 8800 (1 + 0.1)A = 8800 (1.1)A = 9680The amount at the end of 2nd year is 9680.Therefore, compound interest = 9680 - 8000 = Rs.1680.Than</p></body></html>