Question

Find the ci reckoned anually for 6500 at 9% per annum for 3 years and 9 months?
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Answer 1

Answer:

Solution

For first year

P=6500,R=5%, T=1

Interest = PRT/100

= (6500×5×1)/500

=325

Amount = Interest + Principle =325+6500=Rs.6825

For second year principle will be amount of previous year (since interest is compounded)

P=6825,R=6%, T=1

Interest = PRT/100

=(6825×6×1)/100

=Rs.409.5

Amount=P+I=6825+409.5=7234.5

Total interest =325+409.5=Rs.734.5

∴ Amount after 2 years will be Rs.7234.5 and interest Rs.734.5