Question

find ci paid when a sum of rs. 10,000 is invested for 3 years at 81/2% per annum compounded annually.​

Answer 1

Answer:

For first year

P=10000,R=8.5%, T=1

Interest = Prt/100

=

100/(10000×8.5×1)

=850

Amount = Interest + Principle =10000+850=Rs.10850

For second year principle will be amount of previous year (since interest is compounded)

P=10850,R=8.5%, T=3months =

3/12 years=0.25years

Interest =

PRT/100

=(10850×8.5×0.25)/100

=Rs.230.5625

Total interest =850+230.5625=Rs.1080.5625

∴ Compound interest paid after 1 year and 3months is Rs.1080.5625