Question

find the amount and the compound interest on rupees 20480 for 3÷2 years at 25 ÷ 2% per annum compounded annually

Answer 1

Solutions :-

We have,
Principle = p = Rs 20480
Time = t = 3 ÷ 2 years = 1.5 years
Rate = 25÷2 % p.a. = 12.5 % p.a.

Amount (A) = p (1 + r)^t
= 20480 (1 + 12.5%)^1.5
= 20480 (1 + 0.125)^1.5
= 20480 (1.125)^1.5
= 20480 × 1.1932426933
= 24437.61 (approx.)

Now,
Compound Interest = A - p
= Rs (24437.61 - 20480)
= Rs 3957.61

Answer :
Amount = Rs 24437.61
Compound Interest = Rs 3957.61