Question

1. Calculate the amount and compound interest on
1
(a) 10,800 for 12 5 year at 10%per annum compounded annually.​

Answer 1

A= P(1+R/100)^n

P= 10800

R= 12.5 years

N= 10%

A= 10800(1+10/100)^12

A= 33,895.02

Compound Interest

= A-P

33,895.02- 10800

=

23,095.02

Simple interest for 6 months

p×r×T/100

23095.02× 10 × 1/100×2

= 4,619.004

Total CI

= 23,095.02+ 4,619.004

=27,714.024

Hence compound interest is 27,714.024