Question

Calculate the amount and CI on ₹10,800 for 3 years at a 12.5% per annum compounded annually.

Answer 1

Answer:

Given :-

• A sum of Rs 10800 for 3 years at 12.5% per annum compounded annually.

To Find :-

• What is the amount and compound interest.

Formula Used :-

$\clubsuit$ Amount formula when the interest is compounded annually :

$\bigstar \: \: \sf\boxed{\bold{\pink{A =\: P\bigg(1 + \dfrac{r}{100}\bigg)^n}}}\: \: \: \bigstar$

$\clubsuit$ Compound Interest Formula :

$\bigstar \: \: \sf\boxed{\bold{\pink{Compound\: Interest =\: A - P}}}\: \: \: \bigstar$

Solution :-

First, we have to find the amount :

Given :

• Principal = Rs 10800
• Rate of Interest = 12.5% per annum
• Time Period = 3 years

According to the question by using the formula we get,

$\implies \sf A =\: 10800\bigg(1 + \dfrac{12.5}{100}\bigg)^3$

$\implies \sf A =\: 10800\bigg(\dfrac{112.5}{100}\bigg)^3$

$\implies \sf A =\: 10800(1.125)^3$

$\implies \sf A =\: 10800(1.125 \times 1.125 \times 1.125)$

$\implies \sf A =\: 10800 \times 1.4238$

$\implies \sf\bold{\purple{A =\: Rs\: 15377.04}}$

Now, we have to find the compound interest :

Given :

• Amount = Rs 15377.04
• Principal = Rs 10800

According to the question by using the formula we get,

$\dashrightarrow \sf Compound\: Interest =\: Rs\: 15377.04 - Rs\: 10800$

$\dashrightarrow \sf\bold{\red{Compound\: Interest =\: Rs\: 4577.04}}$

$\therefore$ The amount is Rs 15377.04 and the compound interest is Rs 4577.04 .