Question

Compound interest of rs.20480 at 6 1⁄4% per annum for 2 years 73 days is

Answer 1

We take a year to have 365 days

73 days = 73/365 = 0.2 years

No. of years = 2.2 years

Using the compound interest formula

Amount = P(1 + R/100)^n

Amount = 20480(1 + 6.25/100)^2.2

              = 23402

Compound interest = 23402 - 20480

                               = Rs. 2922

Answer 2

Answer:

Rs .2929

Explanation:

C.I. = Rs[20480 x(1 +25/4 x 100)2 (1 + 1/5 x 25/4 x 100) - 20480 ]

= Rs.[(20480 x 17/16 x 17/16 x 81/80) - 20480]

= 20480[23409 - 20480/20480]

= Rs .2929