Calculate amount on rs. 80000 for 2 1/2 years at rate of 5% compound interest per annum
Answers
A VERY EASY ONE:
HERE IS THE MOST SIMPLE ANSWER.
GIVEN,
Principal(P) = ₹80,000
Rate of Interest(R) = 5% p.a.
Time period (n) = 2 years 6 month
First, we will calculate the compound interest for the first two years.
Interest for the first year = ₹ (80,000×5×1)÷100
=4,000.
Amount at the end of the first year = ₹ (80,000+4,000) = ₹84,000.
Principal for the second year = ₹84,000
Interest for the second year = ₹ (84,000×5×1)÷100
=4,200
Amount at the end of the second year = ₹ (84,000+4,200)= ₹ 88,200.
Principal for the third year = ₹ 88,200
Interest for the next six months
=₹(88,200×5×1)÷100×2
=₹ 2205
[We are taking six months as half years]
Therefore,
Amount after the required time = ₹(88,200+2,205)
=₹90,405.(ANSWER)
HOPE THIS HELPS YOU WITH YOUR STUDIES.
REGARDS,
SPANDAN ROY.