Question

Find the amount and compound interest earned on Rs. 15,000 at the end of 1 year, if
Compounded annually, at a rate of 12% p.a.
ii) Compounded semi-annually, at a rate of 10% p.a.
Plz help

Answer 1

ANSWER

We know the formula,

A=P(1+

n

r

)

n.t

Given:

P= Rs. 15000,r=20%,n=4 and t=2.5 years

⇒A=15000(1+

4

0.08

)

2×2.5

⇒A=15000×1.02

10

⇒A=15000×1.218994

⇒A= Rs. 18284.91

To find interest, we use formula

A=P+I

Since A=18284.91 and P=15000, we have

A=P+I

⇒18284.91=15000+I

⇒I=18284.91−15000=3284.91

Interest, I= Rs. 3284.91