Maria invested ₹ 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. (ii) The interest for the 3^rd year.

Solution:

Given that, Maria invested ₹ 8,000 in a business

We know that,

A = P[1 + (r/100)]ⁿ

P = ₹ 8,000

n = 2

R = 5% p.a. compounded annually

(i) For calculation of amount credited at the end of second year:

A = P[1 + (r/100)]ⁿ

A = 8000[1 + (5/100)]²

A = 8000[1 + (1/20)]²

A = 8000 × (21/20)²

A = 8000 × (21/20) × (21/20)

A = 8000 × (441/400)

A = 20 × 441

A = 8820

(ii) For calculating interest for the 3^rd year, the principal = 8820

Simple Interest(S.I.) = (P × R × T) / 100

= (8820 × 5 × 1)/100

= 441

☛ Check: NCERT Solutions for Class 8 Maths Chapter 8

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Video Solution:

Maria invested ₹ 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 (ii) The interest for the 3^rd year

NCERT Solutions Class 8 Maths Chapter 8 Exercise 8.3 Question 7

Summary:

Maria invested ₹ 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 is ₹ 8820 (ii) The interest for the 3^rd year is ₹ 441

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