What is the compound interest on Rs. 8000 at the rate of 10% per annum compounded annually for 2 years?

To calculate the compound interest, we can use the formula:

A = P (1 + r/n) ^ nt

Where: A = the amount of money accumulated after n years, including interest. P = principal amount (the initial amount of money) r = annual interest rate (in decimal) n = number of times that interest is compounded per year t = time the money is invested for in years

Given in the problem: P = Rs. 8000 r = 10% per annum = 0.10 (in decimal) n = 1 (since it is compounded annually) t = 2 years

Substituting these values into the formula:

A = 8000 (1 + 0.10/1) ^ (1*2) A = 8000 (1 + 0.10) ^ 2 A = 8000 (1.10) ^ 2 A = 8000 * 1.21 A = Rs. 9680

The compound interest is then calculated by subtracting the initial principal from the calculated amount:

Compound Interest = A - P Compound Interest = Rs. 9680 - Rs. 8000 Compound Interest = Rs. 1680

So, the compound interest on Rs. 8000 at the rate of 10% per annum compounded annually for 2 years is Rs. 1680.