Question

18000 for 3 years at 12 1/2%p.a. compounded annually.​

Answer 1

Answer:

Amount = Rs. 25628.96

Compound Interest = Rs. 7628.96

Step-by-step explanation:

Let us first list all the information provided to us in the question which will be useful while solving it-

Principal, P = Rs. 18000

Time, t = 3 years

Rate of Interest, R = $12 \frac{1}{2} \%$ = (25/2)℅ compunded annually

Now,

Amount, A = P[ 1 + ( R / 100 ) ]^t

A = 18000[ 1 + ($\frac{25}{2}$ / 100 ) ]^3

A = 18000[ 1 + ($\frac{25}{200}$ ) ]^3

A = 18000[ 225/200 ]^3

A = 18000[ 9/8 ]^3

A = 18000 * 729/512

A = Rs. 25628.96

CI = Rs. 7628.96