7 Maria invested Rs 8,000 in a business. She would be paid interest at 5% per annum compounded annually. Find
(i) The amount credited against her name at the end of the second year.
Principal amount, P = Rs 8,000
Compound rate of interest, R = 5% p.a.
Time period, n = 2 years
We know, Amount when interest is compounded annually, A =
Therefore, the amount credited against her name at the end of the second year is Rs 8,820
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