Question

Find the amount and compound interest on Rs 10240 for 3 years at 25/2%p.a. compounded annually.

Answer 1

Amount=P(1+R/100)^T=10240(1+25/2×100)^3
=10240(200+25/200)^3
=10240×225/200×225/200×225/200
=10240×9/8×9/8×9/8
=1280×9×9/8×9/8
=20×9×9×9
=20×729
=14580
Compound interest = 14580-10240=₹4340

Answer 2

In compund interest

A=P(1+R/100)^t

P = 10240, R = 12½ = 25/2, T = 3 years.

A = 10240(1+25/200)³

= 10240(1+1/8)³

=10240(9/8)³

=10240×9/8×9/8×9/8

=1280×9/1×9/8×9/8

=160×9×9×9/8

=20×9×9×9

Amount = ₹ 14580