Find the compound interest on Rs. 8000 at 4% per annum for 2 years compounded annually
R 652.80
R 452.80
R 652
R 552.80
Here, P = R 8000, R = 4%, Time = 2 years
Now, according to the formula,
$\text { Amount }=\mathrm{P}\left(1+\frac{R}{100}\right)^n=8000\left(1+\frac{4}{100}\right)^2=8000 \times \frac{26}{25} \times \frac{26}{25}=\mathrm{R} 8652.80$
∴ CI = R (8652.80 – 8000) = R 652.80