Albert invests Rs. 8000 at 5% p.a. compounded annually for 2 years. What is the maturity amount?

Problem restatement
Compute the amount after 2 years at 5% compound interest on Rs. 8000.

Given data

• P = Rs. 8000, r = 5% p.a., t = 2 years

Concept/Approach
Use the compound amount formula A = P(1 + r)^t.

Step-by-step calculation
A = 8000 × (1.05)² = 8000 × 1.1025 = Rs. 8820

Verification/Alternative
Year 1: interest = 400 ⇒ amount = 8400; Year 2: interest = 420 ⇒ amount = 8820.