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Answer :
(i) Given: P = ₹ 8,000, R = 5% p.a. and n = 2 years
Amount=\(P(1+\frac{R}{100})^n\)
=\(8,000(1+\frac{5}{100})^2\)
=\(8,000(\frac{21}{20})^2\)
=\(8,000\times(\frac{21}{20}\times \frac{21}{20})\)
=\(20\times 441\)
=\(₹ \; 8,820\)
Thus, the amount credited at the end of 2 years=₹ 8,820
(ii) Interest for the third year=Amount after 3 years - Amount after 2 years
=\(P(1+\frac{R}{100})^n\) - ₹ 8,820
=\(8,000(1+\frac{5}{100})^3\) - ₹ 8,820
=\(8,000(\frac{21}{20})^3\) - ₹ 8,820
=\(8,000\times(\frac{21}{20}\times \frac{21}{20}\times \frac{21}{20})\) - ₹ 8,820
= ₹ 9,261 - ₹ 8,820
= ₹ 441
Hence we got, interest for the third year = ₹ 441