Question

calculate amount & compound interest on rs 10800 for 3 yrs at 12 1/2% per annum compounded annually

Answer 1

So ,
principal =10800
time=3yrs
rate=12 1/2%=25/2%
for first year
Intrest=10800*1*25/100*2=1350
amount for first year =10800+1350=12150

for 2nd year
as principle =12150
i.e. interest =12150*1*25/100*2=1518.75
amount for 2nd year =12150+1518.75=13668.75

for 3rd year
as principle =13668.75
i.e. interest =13668.75*1*25/100*2=1711.09375
amount for 3rd and last year =13668.75+1711.09375=15379.84375
the compound interest =1350+1518.75+1711.09375=4579.84378