Question

Calculate C.I. On Rs. 1000 Compounded yearly at 5% for 1 year . (In Rs.) 5 , 50 , 500 , 250. ​

Answer 1

• C.I is Rs. 50 .

Step-by-step explanation:

Given:-

• Principal is Rs. 1000
• Rate of interest is 5%
• Time period is 1 year.

To find:-

• Compound interest.

Solution:-

• First we have to find Amount because for Compound interest, Amount is needed.

We know that,

$\boxed{\sf \bold{\star \: Amount = P (1 + \cfrac{R}{100} )^{n}}}$

In which,

• P is principal.
• R is Rate of interest.
• n is time period.

P = Rs.1000

R = 5%

n = 1 year

Put the values of P , R and n in formula :

$\longrightarrow \sf \bold{1000 \times (1 + \cfrac{5}{100} )^{1} }$

$\longrightarrow \sf \bold{1000 \times ( \cfrac{100 + 1}{100} }) ^{1}$

$\longrightarrow \sf \bold{10\cancel{00} \times \cfrac{105}{1 \cancel{00}} }$

$\longrightarrow \sf \bold{1050}$

Amount = Rs. 1050

$\boxed{\sf \bold{\star \:Compound\: interest=Amount - Principal}}$

$\longrightarrow \sf \bold{1050 - 1000}$

$\longrightarrow \sf \bold{50}$

Therefore,

Compound interest is Rs. 50 .