(1) Principal = 3200, r = 2.5 p.a, n = 2 years, interest compounded annually.
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Step-by-step explanation:
Principal (P) = ₹ 3200
r = 2.5% p.a
n = 2 years comp, annually
∴ Amount (A) = (1 + r/100)
n = (1 + 2.5/100)2 = 3200 x (1.025)2 = 3362 Compound interest (Cl) = Amount – Principal
= 3362 – 3200 = ₹ 162
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