Question

B{ 1. Using the formula, calculate the amount and the compound interest in each of the following:
(c) P = Rs 2,500, R = 8% per annum, n = 3 years.​

Answer 1

P = Rs 2,500, R = 8% per annum, n = 3 years

Amount(A)

Principle(P)

Rate(R)

number of years(n)

Now, finding amount

Formula:

$a = p {(1 + \frac{r}{100} )}^{n} \\ = >a = 2500 {(1 + \frac{8}{100} })^{3} \\ = > a = 2500 {(1.08)}^{3} \\ = > a = 3149$

Therefore, amount= Rs 3149

Amount= Compound interest

As compound interest is the initial amount plus the principle interest

Therefore, compound interest= Rs 3149