Question

find amount and compound interest on rs 42,500 At 8%per annum for 3 years compounded annually ​

Answer 1

Answer:

In above the picture the correct answer is :

Explaination :

Answer 2

Given:

✰ Principal ( P ) = Rs. 42500

✰ Rate ( r ) = 8%

✰ Time ( n ) = 3 years

To find:

✠ Compound interest ( C.I. )

Solution:

First we will find the amount by using formula. Putting the values in the formula and then doing the required calculations.

The difference between the final amount and the original principal is the required compound interest. Here, we will find the compounded interest for 3 years.

The formula for finding amount, when the interest is compounded yearly, we have:

✭ A = P( 1 + r/100 )ⁿ ✭

Where,

• A = Amount;
• P = Principal;
• r = Rate of interest compounded yearly.
• n = Number of years.

Putting the values in the formula, we have:

➛ A = 42500( 1 + 8/100 )³

➛ A = 42500( (100 + 8)/100 )³

➛ A = 42500 × ( 108/100 )³

➛ A = 42500 × 108/100 × 108/100 × 108/100

➛ A = 425 × 108 × 108/100 × 108/100

➛ A = 425 × 108 × 108 × 108/10000

➛ A = 45900 × 11664/10000

➛ A = 535,377,600/10000

➛ A = 5353776/100

➛ A = Rs. 53,537.76

Then, finally we will find the compound interest.

( The difference between the final amount and the original principal is the required compound interest. )

➤ C.I. = A - P

Where,

• C.I. = Compound interest
• A = Amount
• P = Principal

Putting the values, we have:Putting the values, we have:

➤ C.I. = 53537.76 - 42500

➤ C.I. = Rs. 11,037.76

∴ The required compound interest ( C.I. ) = Rs. 11,037.76

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