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 third year.

(i) Here,
Principal (P) = ₹ 8000, Rate of Interest (R) = 5%, Time (n) = 2 years
Amount (A) = P (1+R/100)ⁿ = 8000(1+5/100)² = 8000(1+1/20)²
= 8000(21/20)² = 8000 x 21/20 x21/20 =₹8,820
(ii) Here, Principal (P) = ₹ 8000, Rate of Interest (R) = 5%, Time (n) = 3 years
Amount (A) = P(1+R/100)ⁿ = 8000(1+5/100)³ = 8000(1+ 1/20)³
= 8000 (21/20)³ = 8000x 21/20 x21/21 x 21/20 = ₹ 9,261

Interest for 3rd year = A – P = ₹ 9,261 – ₹ 8,820 = ₹ 441

Class 8 Maths Chapter 8 Exercise 8.3 Solution in Video

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https://www.tiwariacademy.com/ncert-solutions/class-8/maths/chapter-8/