Question

1. Calculate amount and compound interest on :
(i) *2500 for 2 years at 8% per annum.
(ii) 3 5200 for 2 years at 6% per annum completed half yearly.
(iii)
8800 for 1-years at 9% per annum.​

Answer 1

i. P = 2500,R = 8% , T = 2 yrs

amount = p × (1+ r/100)^n

threfore, 2500 × ( 1+ 8/100)^2

2500 × 108/100 × 108/100

= 108 × 27

A = 2916

Compound interest = A - P

= 2916 - 2500

= 416

ii. P = 35200 , R = 6% , T = 2 yrs

A = 35200 × ( 1 + 6/100 ) ^2

= 35200 × 106/100 × 106/100

= 88 × 106 × 106 / 25

= 39550.72

Compound interest = 39550.72 - 355200

= 4350.72

iii. P = 8800 , R = 9% , T = 1 yr

A = 8800 × ( 1 + 9 / 100 ) ^1

= 8800 × 109/ 100

= 9592

Compound interest = 9592 - 8800

=792