Question

An amount of Rs.10,000 is invested for one year three months at the rate of seven

and half percent per annum compounded annually. Find the following:-

a) Amount received after the given time period.

b) Compound interest received after the given time period​

Answer 1

Step-by-step explanation:

Here, Principal amount, P=10000 Rs

Rate, r=8.5% per annum

Time, t=1 year and 3 months So, Amount after first year =10000∗(1+8.5100)1

=10000∗108.5100=10850

So, interest after first year =10850−10000=850 Rs

Now, interest for 3 months in 2nd year =10850∗8.5∗3100∗12=230.56 Rs

So, total compound interest 850+230.56=1080.56 Rs