Question

Find Compound interest paid when a sum of 10000 is invested for I vear and 3 months at 8 1/2 % per annum compounded annually.​

Answer 1

Answer:

Therefore, the compound interest per annum on the given values of principal and rate of interest is equal to Rs. 1080.56.

Answer 2

Answer:

₹850.

Step-by-step explanation:

Principal = ₹10,000.

Time = 1year and 3months

Converting 1year and 3months in to year.

1year = 12months

1year 3months = 12 + 3 = 15months.

Now, converting months into year

12months = 1year

15months = $\rm\dfrac{15}{12}=\dfrac{5}{4}=1.25\:years.= 1\:year\:(Rounded\:off).$

∴ Time = 1year.

Rate = $\rm8\dfrac{1}{2}\%p.a.= \dfrac{17}{2}\%\:p.a.$

Compound = Annually.

$\bf{A =P\bigg(1+\dfrac{R}{100}\bigg)^n} \\ \\ \\\rm{=10000\bigg(1 + \frac{ \frac{17}{2} }{100} \bigg)^{1}} \\ \\ \\ \rm{ = 10000 \bigg(1 + \frac{17}{100 \times 2} \bigg)^{1} } \\ \\ \\ \rm{ = 10000 \bigg(1 + \frac{17}{200}} \bigg) \\ \\ \\ \rm{ = 10000 \bigg( \frac{1 \times 200}{1 \times 200} + \frac{17}{17}} \bigg) \\ \\ \\ \rm{ = 10000 \bigg( \frac{200 + 17}{200} \bigg)} \\ \\ \\ \rm{ = 10000 \times \frac{217}{200}} \\ \\ \\ \rm{ = 50 \times 217} \\ \\ \\ = 10850.$

Amount = ₹10,850.

C.I. = A - P

= 10850 - 10000

= 850.

Therefore, compound interest is ₹850.

Used Abbreviations

P = Principal.

A = Amount.

n = Time.

R = Rate.

C.I. = Compound Interest.

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