Question

Calculate the amount when principal is Rs 7,000, the rate of interest is 5% per annum : If the interest is compound yearly and the duration is 1and half year​

Answer 1

Step-by-step explanation:

here is your answer . hope its useful for you

Answer 2

Solution!!

The concept of compound interest has to be used here. The principal, rate of interest and time is given in the question. According to the question, we are asked to find the amount. As we know that there is a specific formula with which we can calculate the amount, hence we will use that formula itself.

Principal = Rs 7000

Rate of interest = 5%

Time = 1½ year = 1.5 years

Amount = P(1 + R/100)ⁿ

Amount = 7000(1 + 5/100)$\sf ^{1.5}$

Amount = 7000(105/100)$\sf ^{1.5}$

Amount = 7000(21/20)$\sf ^{1.5}$

Amount = $\sf 7000\times \dfrac{21^{1.5}}{20^{1.5}}$

Amount = $\sf \dfrac{7000\times 21^{\frac{3}{2}}}{20^{\frac{3}{2}}}$

Amount = $\sf \dfrac{7000\times \sqrt{21^{3}}}{\sqrt{20^{3}}}$

Amount = $\sf \dfrac{7000\times 21\sqrt{21}}{20\sqrt{20}}$

Amount = $\sf \dfrac{7000\times 21\sqrt{21}}{40\sqrt{5}}$

Amount = $\sf \dfrac{175\times 21\sqrt{21}}{\sqrt{5}}$

Amount = $\sf \dfrac{3675\sqrt{21}}{\sqrt{5}}$

Amount = $\sf 735\sqrt{105}$

Amount ≈ Rs 7531.509

Abbreviations used:

P → Principal

R → Rate of interest

n → Time