Find the compound interest on an amount of Rs.8,000 at 5% p.a. for 2 years, compounded annually.

Correct option is B

Given:
Amount = 8000
Rate = 5%
Time = 2 years
Formula Used:
​$$A = P × (1 + \frac{r }{ 100})^t$$​​

Solution:
​$$=> A = P × (1 +\frac{ r }{ 100})^t \\\ \\=> A = 8000 × (1 + \frac{5 }{100})^2 \\\ \\=> A = 8000 × (1.05)^2 \\\ \\=> A = 8820$$​​
Compound Interest = Amount - Principal
=> CI = 8820 - 8000
=> CI = 820