Calculate the amount and the compound interest by using formula (interest
compounded yearly).
• Principal = Rs 31,250, time =
2½
years, Rate = 12% p.a. (ans:41552 &10302 soln please)
Answers
★ The principal of Rs.31,250 is compounded of 2½ years annually at the rate of interest 12% per annum
★ The amount and the compound interest
☀️ Concept : Now, we have been given the principal amount which is 31,250 , the time which is 2½ and the rate of interest which is 12% per annum so, now let's use the formula which is to be used to find out the amount and later subtract it from the principal to find the compound interest
✰ Now here as we have been given the time in form of mixed fraction so, first let's find the amount for when compounded for 2 years and later use the simple interest formula and find the amount for the rest half year
✪ Formula to find compound interest :
✪ Formula to find simple interest :
~ Now let's use the above mentioned formula and find out the amount for thee first 2 years
→ Formula
→ Where,
- A stands for amount
- P stands for principal
- R stands for rate
- N stands for time
→ Here,
- Principal = 31250
- Rate = 12%
- Time = 2 years
~ Substituting the values we get,
➟ A = P [ 1 + r/100] ^n
➟ A = 31250 [1 + 12/100] ²
➟ A = 31250 [ 112/100 ] ²
➟ A = 31250 × 112/100 × 112/100
➟ A = 392000000/10000
➟ A = Rs.39200
- Henceforth amount is 39200 for 2 years
~ Now let's find the interest for the rest half year
→ Formula
→ Here,
- P stands for principal
- R stands for rate
- T stands for time
→ Where,
- Principal = 39200
- Rate = 12%
- Time 1/2 year
~ Substituting the values we get
➟ S.I = P × T × R / 100
➟ S.I = 39200 × 1/2 × 12 / 100
➟ S.I = 235200 / 100
➟ S.I = 2352
- Henceforth the interest for the rest half year is 2352
~ Now let's add up the result to find the amount for 2½
➟ Amount = 39200 + 2352
➟ Amount = 41552
- Henceforth the amount is 41552
~ Now in order to find the compound interest let's subtract the Principal from the Amount
➟ Compound Interest = A - P
➟ Compound Interest = 41552 - 31250
➟ Compound Interest = Rs.10302
- Henceforth the compound interest is 10302
- Formula to find the amount when compounded half yearly
- Formula to find the amount when compounded quarterly
- Formula to find the amount when compounded at different rate of interests