Question

Find compound interest paid when a sum of ₹ 10000 is invested for 1 year and 3 months at 17/2% per annum compounded annually?

Answer 1

Answer:

The Compound interest for 1 year 3 months is Rs. 11080.52

Step-by-step explanation:

Step 1:

Given data:

P= ₹ 10000

T=1 year

R=17/2%

I=PTR/100

I=100001 x 17/100 x 2

I=₹ 850

Step 2:

Amount at the end of the 1 year  

=P+I

=10000+850

=10850 this is next 3 months principal

Step 3:

P=₹ 10850

T=3 months =3/12=1/4 yr

R=17/2%

I=10850 x 1 x 17/100 x 4 x 2

=18445/80

= Rs. 270.56

Step 4:

At the end of the 1 year 3 months

Amount=P+I

=10850+230.56

=11080.52

Compound interest for 1 year 3 months is 11080.52

Answer 2

Total amount = 11080.50. Compound interest = 11080.50-10000= 1080.50