Amount when interest is compounded annually is given by the formula _________

Solution:

Amount when interest is compounded annually is given by the formula P(1 + r/100)ⁿ

where:

P = principal

r = annual rate of interest

n = number of years or time periods

✦ Try This: What will be the amount if Rs 48,000 is deposited in a bank for two years at 8% per annum when compounded annually.

Amount = 48000(1 + 8/100)²

= 48000(1.08)²

= 48000 × 1.1664

= Rs. 55987.20

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

NCERT Exemplar Class 8 Maths Chapter 9 Problem 27

Amount when interest is compounded annually is given by the formula _________

Summary:

Amount when interest is compounded annually is given by the formula P(1 + r/100)ⁿ, where P = principal, r = annual rate of interest, n = number of years or time periods

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