Question

Find the compound interest and the total amount after an hour if the interest is compounded every ten minutes.

Answer 1

Answer:

Step-by-step explanation:

Given Find the compound interest and the total amount after an hour if the interest is compounded every ten minutes. principal =₹512 rate of interest =5% per minute total amount = ₹ compound interest ₹

We need to find the total amount and the compound interest.

So given Principal P = 512

Rate of interest R = 5% per minute

                               = 5 x 10 (interest for every 10 min)

                              = 50

Now n = 60 / 10 = 6

So we have Amount A = P(1 + R / 100)^n

                                        = 512 (1 + 50/100)^6

                                        = 512 (3/2)^6

                                      = 5.2 (1.5)^6

                                       = Rs 5832

Now Compound Interest = A – P

                                          = 5832 – 512

                                        = Rs 5320