Question

calculate the amount and compound interest on. ( a ) Rs 10,800 for 3 years at 12.5 % per annum compound annually. ​

Answer 1

Step-by-step explanation:

Given,

Principal,P = Rs 10800

Compound Interese Rate,R = 12\frac{1}{2} \% = \frac{25}{2}\% p.a.

Time period,n = 3 years.

We know,

Amount when interest is compounded annually, A = P(1+\frac{R}{100})^n

Therefore, the required amount = 10800(1+\frac{25}{2\times100})^{3} = Rs. 15377.34

And Compound Interest, CI = Amount - Principal = Rs. (15377.34 - 10800) = Rs. 4577.34