Question

Find the amount and the compound interest on ₹ 7500 for 2 years, 8 months at 10% p.a.,
compounded annually.
​

Answer 1

Answer:

Rs2180

Step-by-step explanation:

Given :

principal = Rs 7500

Time = 2 yrs and 8 month = 8/12 years!

Rate of interest = 10%

To Find :

☞ Compound interest calculated yearly = ?

☞ Calculating Interest on first year :-

$\: \: \: \: \: \: \: \: \: \: \: \: \implies \sf interest \: on \: 1^{st} \: year \: = \dfrac{7500 \times 1 \times 10}{100}$

$\: \: \: \: \: \: \: \: \: \: \: \: \implies \sf interest \: on \: 1^{st} \: year \: = 750$

☞ Amount = Rs 8250

☞ Calculating interest on second year :

$\: \: \: \: \: \: \: \: \: \: \: \: \implies \sf interest \: on \: 2^{nd} \: year \: = \dfrac{8250 \times 1 \times 10}{100}$

☞ Amount = Rs 9075

$\: \: \: \: \: \: \: \: \: \: \: \: \implies \sf interest \: on \: \frac{8}{12} \: years \: = \dfrac{9075 \times 8}{100 \times 12}$

Amount = Rs 9680

☞ CI = Amount - Principal

☞ CI = 9680 - 7500

☞ CI = Rs 2180

What you need to know ?

• Simple interest is the charge of loan after specific amount of time.

• There is an entity called Compound interest. Let's go through a quick differentiation of two! Compound Interest is calculated on entire amount . while Simple interest is calculated on principle.

• Simple interest is given by multiplying principle , rate percentage and time.

Answer 2

Step-by-step explanation:

Given that, the compound interest on ₹ 7500 for 2 years, 8 months at 10% p.a. compounded annually.

We have to find the amount and compound interest.

Amount at the end of 2nd year = P × (1 + r/100)ⁿ

= 7500 × (1 + 10/100)²

= 7500 × (110/100)²

= 7500 × 121/100

= Rs. 9075 ....................(1)

Compound interest for 8 months =

= (9075 × 10 × 8)/(12 × 100)

= Rs. 605 .................(2)

To find amount for 2 years, 8 months, we have to add the eq (1) & (2)

Therefore,

Amount after 2yrs 8 months = 9075 + 605 = Rs. 9680 ........(3)

To find compound interest we have to subtract P (principal) from A(amount)

Therefore,

Compound interest = 9680 - 7500 = Rs. 2180