Question

5. * 62500 for 2 years 6 months at 12% per annum compounded annually.​

Answer 1

Answer:

Present value= ₹ 62500 Interest rate= 12 % per annum Time=2 years 6 months = (2 + ½) years= 5/2 years To find the amount we have the formula, Amount (A) = P (1+(R/100))n Where P is present value, r is rate of interest, n is time in years. Now substituting the values in above formula we get, ∴ A = 62500 (1 + 12/100)2 [1 + (1/2 × 12)/100] ⇒ A = 62500 (1+3/25)2 (1+6/100) ⇒ A = 62500 (28/25)2 (106/100) ⇒ A = 625 × 784/625 × 106 = 784 × 106 ⇒ A = ₹ 83104 ∴ Compound interest = A – P = 83104 – 62500 = ₹ 20604