Question

Calculate the amount and compound interest on

(a) Rs 10,800 for 3 years at 12 1/2% per annum compounded annually.
​

Answer 1

Here, P=10,800

          n=3 years

          R=12 1/2%=25/2%

A=P(1+100R)n

   =10,800(1+25/100*2)³

 =10,800(1+25/200)³

=10,800(200+25/200)³

=10,800(225/200)³

=10,800×225/200×225/200×225/200

A=Rs. 15377.34

Compound Interest=Amount-P

                                =15377.34−10,800

                                =4577.34Rs