Question

Find amount and compound interest when interest is compounded annually. P= 90,500; T=
$2 \times \frac{1}{2}$
years R=10 persent ​

Answer 1

Answer:

Given,

Principal,P =Rs.18000,  Rate,R = 10%   and time period,n = 2.5 years. 

We know, Amount when interest is compounded annually = 

Amount after 2 years at 10% , A =  = Rs.21780

This acts as the principal amount for the next half year.

SI on next 1/2 year at = = Rs. 1089

Therefore, Total amount to be paid after 2.5 years = Rs. (21780+1089) = Rs.22869

Now, Compound Interest after 2 years = A - P = Rs.(21780-18000) = Rs. 3780

Therefore, Compound Interest after 2.5 years, CI = Rs. 3780 + SI = Rs.4869