Question

To start a business Shalaka has taken a loan of Rs 8000 at a rate of 10\(\cfrac{1}{2}\)p.c.p.a. After two years how much compound interest will she have to pay?

Answer 1

Here, P = Rs 8000, N = 2 years and

I = Amount (A) – Principal (P) 

= 9768.20 – 8000 

= Rs 1768.20 

∴ After two years Shalaka will have to pay Rs 1768.20 as compound interest.