EXERCISE 8.3
1. Calculate the amount and compound interest on
1
(a) Rs 10,800 for 3 years at 12% per annum compounded annually.
2
1
(b) Rs 18,000 for 22 years at 10% per annum compounded annually.
1
(c) Rs 62,500 for 1 years at 8% per annum compounded half yearly.
2
(d) Rs 8,000 for 1 year at 9% per annum compounded half yearly.
(You could use the year by year calculation using SI formula to verify).
(e) Rs 10,000 for 1 year at 8% per annum compounded half yearly.
Answers
Answer:
Ans. (a) Here, Principal (P) = Rs. 10800, Time = 3 years,
Rate of interest (R) =
Amount (A) =
= =
= =
=
= Rs. 15,377.34
Compound Interest (C.I.) = A – P
= Rs. 10800 – Rs. 15377.34 = Rs. 4,577.34
(b) Here, Principal (P) = Rs. 18,000, Time = years, Rate of interest (R)
= 10% p.a.
Amount (A) =
= =
= =
= Rs. 21,780
Interest for years on Rs. 21,780 at rate of 10% = = Rs. 1,089
Total amount for years
= Rs. 21,780 + Rs. 1089 = Rs. 22,869
Compound Interest (C.I.) = A – P
= Rs. 22869 – Rs. 18000 = Rs. 4,869
(c) Here, Principal (P) = Rs. 62500, Time = = years = 3 years (compounded half yearly)
Rate of interest (R) = 8% = 4% (compounded half yearly)
Amount (A) =
=
=
=
=
= Rs. 70,304
Compound Interest (C.I.) = A – P
= Rs. 70304 – Rs. 62500 = Rs. 7,804
(d) Here, Principal (P) = Rs. 8000, Time = 1 years = 2 years(compounded half yearly)
Rate of interest (R) = 9% = (compounded half yearly)
Amount (A) =
=
=
=
=
= Rs. 8,736.20
Compound Interest (C.I.) = A – P
= Rs. 8736.20 – Rs. 8000
= Rs. 736.20
(e) Here, Principal (P) = Rs. 10,000, Time = 1 years = 2 years (compounded half yearly)
Rate of interest (R) = 8% = 4% (compounded half yearly)
Amount (A) =
=
=
=
=
= Rs. 10,816
Compound Interest (C.I.) = A – P
= Rs. 10,816 – Rs. 10,000 = Rs. 816