1. Sumitra borrowed a sum of rupees 25,000 to open a boutique, at the rate of 7% per annum for 3 years. Find
compound interest paid by her after 3 years without using formula of compound interest.
Answers
Answer:
Amountmoneyatendof1
2
1
years(A)
\green {= Rs\:33275}=Rs33275
Step-by-step explanation:
\begin{gathered} Principal (P) = Rs \:25000\\Rate \:of \: interest (r) = 20\% \:per \: annum \\= \frac{1}{2}\times 20\%\\=10\% \: per \:half \: yearly \end{gathered}
Principal(P)=Rs25000
Rateofinterest(r)=20%perannum
=
2
1
×20%
=10%perhalfyearly
/* As interest is compounded half yearly, so number of conversion periods in 1½ years is 3, So
n = 3
Let Amount money = A
\boxed { \pink { A = P\left( 1+\frac{r}{100}\right)^{n}}}
A=P(1+
100
r
)
n
\begin{gathered}A = 25000\left( 1 + \frac{10}{100}\right)^{3}\\= 25000\left( 1+0.1\right)^{3}\\= 25000 \times (1.01)^{3}\\= 25000 \times 1.1\times 1.1\times 1.1\end{gathered}
A=25000(1+
100
10
)
3
=25000(1+0.1)
3
=25000×(1.01)
3
=25000×1.1×1.1×1.1
= Rs\:33275=Rs33275
Therefore.,
\red { Amount \: money \: at \:end \: of \: 1\frac{1}{2}\: years (A) }Amountmoneyatendof1
2
1
years(A)
\green {= Rs\:33275}=Rs33275