Question

Find compound interest paid when a sum of ₹10000 is invested for 1 year and 3 months at 8 1/2 % per annum compounded annually?​

Answer 1

Answer:

The Amount after 1 year is Rs 11070 .

Step-by-step explanation:

Given as :

The principal sum = p = Rs 10000

The time period = t = 1 year 3 months = $\dfrac{5}{4}$ = 1.25 years

The rate of interest = 8 $\dfrac{1}{2}$ = $\dfrac{17}{2}$

or, r = 8.5 %  compounded annually

Let The Amount = Rs A

Let The compound Interest = C.I

From Compound Interest

Amount = Principal × $(1+\dfrac{rate}{100})^{time}$

Or, A = Rs 10,000 × $(1+\dfrac{8.5}{100})^{1.25}$

Or, A = Rs 10,000 × $(1.085)^{1.25}$

Or, A = Rs 10,000 × 1.107

∴   A = Rs 11070

So, The Amount after 1 year = A = Rs 11070

Hence, The Amount after 1 year is Rs 11070 . Answer