Question

Find the compound interest and amount on ₹12, 500 for 3years at 10% per annum compounded annually.

Answer 1

Answer:

Given:

Present value =₹ 10240

Interest rate=12

2

1

% per annum =25/2%

Time =3 years

To find the amount we have the formula,

Amount (A)=P(1+(r/100))

n

where P is present value, r is rate of interest, n is time in years.

Now substituting the values in above formula we get,

∴A=10240(1+(25/2)/100)

3

⇒A=10240(1+1/8)

3

⇒A=10240(9/8)

3

⇒A=31250×729/512=20×729

⇒A=₹14580

And, Compound interest =A–P

=14580–10240=₹ 4340