Practice30 Create account

Which formula gives the amount A when principal P is compounded annually at rate R% per annum for n years?

Class 8Compound InterestComparing Quantities

A $A = P (1 + \frac{R}{100})^{n}$
B $A = P (1 + \frac{R n}{100})$
C $A = P + \frac{P \cdot R \cdot n}{100}$
D $A = P (1 - \frac{R}{100})^{n}$

Step-by-Step Solution

For compound interest the amount is

A = P (1 + \frac{R}{100})^{n}

. The simple-interest form is

A = P (1 + \frac{R n}{100})

.

Answer: A)

A = P (1 + \frac{R}{100})^{n}

Master this chapter in 30 minutes a day.

Don't just memorise the answer — build a daily practice habit.

Practice 5 Similar Questions Free →

All Compound Interest practice questions

More Class 8 Compound Interest practice

For a 1-year period (compounded annually), how does compound interest compare with…When interest is compounded half-yearly at R% per annum for n years, the rate and time…The amount on Rs 6000 at 10% per annum compounded half-yearly for 1 year is:For Rs 1600 at 5% compounded annually for 2 years, the interest for the SECOND year…Mr. Sharma invests Rs 20000 in a scheme that gives 10% per annum compounded annually.…