Question

Calculate the amounts for the following interest is compounded annually):Principal = 25,600, rate of interest =7 1/2 , and time period = 3 years ​

Answer 1

Answer:

Correct option is

B

Rs. 13,230 and Rs. 1,230

Amount A=P(1+r)

t

Here, P=12000,r=

100

5

=0.05,t=2

∴A=12000(1+0.05)

2

=12000(1.05)

2

=12000(1.1025)

=13230

Compound interest=13230−12000=1230

Option B is correct.