Question

1 Compute the compound interest on
(i) *1500 for 2 years at 6% per annum
(ii) *2860 for 2 years at 5% per annum
(ii) *3000 for 2 years at 5% per annum.
(iv) *8500 for 2 years at 8% per annum.​

Answer 1

Answer

1) C.I=180

2)C.I=286

3)C.I=300

4)C.I=1360

Answer 2

Answer:

(i) Rs 185.4

(ii) Rs 293.15

(iii) Rs 307.5

(iv) Rs 1414.4

Step-by-step explanation:

The Final Amount of money using Compound interest is calculated using the formula;

        Amount = P * $(1+R)^{T}$   where, P = principal amount of money

                                                      R = rate of interest

                                                      T = Time period  

Then,  Amount = Principal + Compound Interest

So, Compound Interest = Amount - Principal

(i) We are given P = Rs 1500, R = 6% p.a. and T = 2 years

          Amount = $1500*(1+0.06)^{2}$

                        = 1500 * 1.06 * 1.06 = 1685.4

So, Compound Interest = Rs (1685.4 - 1500) = Rs 185.4

(ii) We are given P = Rs 2860, R = 5% p.a. and T = 2 years

          Amount = $2860*(1+0.05)^{2}$

                        = 2860 * 1.05 * 1.05 = 3153.15

So, Compound Interest = Rs (3153.15 - 2860) = Rs 293.15

(iii) We are given P = Rs 3000, R = 5% p.a. and T = 2 years

          Amount = $3000*(1+0.05)^{2}$

                        = 3000 * 1.05 * 1.05 = 3307.5

So, Compound Interest = Rs (3307.5- 3000) = Rs 307.5

(iv) We are given P = Rs 8500, R = 8% p.a. and T = 2 years

          Amount = $8500*(1+0.08)^{2}$

                        = 8500 * 1.08 * 1.08 = 9914.4

So, Compound Interest = Rs (9914.4 - 8500) = Rs 1414.4