Question

CALCULATE THE AMOUNT AND COMPOUND INTREST IN EACH OF THE FOLLOWING:
p = 2575 , R = 10% p.a , T = 3 years.

Answer 1

Given:-

• P (Principal) = ₹2575.
• R (Rate of interest) = 10%.
• T (Time period) = 3 years.

To find:-

• Compound interest.

Solution:-

We know that,

Compound interest = Amount - Principal

• We don't have amount So,

Formula for amount is

Amount = $\sf P {(1 + \frac{R}{100} )}^{n}$

In which,

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

➢ P (Principal) = ₹2575.

➢ R (Rate of interest) = 10%.

➢ T (Time period) = 3 years.

Put , P , R and n is amount formula

$\implies \sf \: 2575 \times {(1 + \frac{10}{100}) }^{3}$

$\implies \sf \: 2575 \times {(\frac{100 + 10}{100}) }^{3}$

$\implies \sf \: 2575 \times {( \frac{110}{100}) }^{3}$

• Cube of 110 is 1331000 and cube of 100 is 1000000.

$\implies \sf \: 2575\times \frac{1331000}{1000000}$

$\implies \sf \frac{3427325000}{1000000}$

$\implies \sf \frac{3427325}{1000}$

$\implies \sf \: 3427.325$

Amount = ₹ 3427.325

Now we have Amount and principal so put both in compound interest Formula

Compound interest = 3427.325 - 2575

= ₹ 852.325

Therefore,

Compound interest is ₹ 852.325.