Question

Find the compound interest and the amount of $ 5,000 at the annual interest rate of 8% for 2 years 6 months.

Answer 1

HELLO!!

ANSWER:

Amount = ₹5616
Compound interest = ₹616

EXPLANATION:

GIVEN:

Principal (P) = ₹5000
Rate of interest (r) = 8% p.a
Time (n) = 2 years 6 months = 18 months = 18/12 years = 3/2 years = 1½ years

TO FIND:

Amount and Compound interest

SOLUTION:

Amount (A) = P (1 + r/100)¹ [1 + ½ (r/100)]

A = 5000(1 + 8/100) [1 + ½ (8/100) ]

A = 5000(1 + 0.08) [1 + 8/200 ]

A = 5000(1.08) [1 + 0.04 ]

A = 5000(1.08) [1.04]

A = 5000(1.1232)

Amount = ₹5616

Compound interest (CI) = A - P

CI = 5616 - 5000

Compound interest = ₹616

HOPE IT HELPS YOU!!