Question

Find the compound interest on `15625 for 1 1 2 years at 8% per annum

Answer 1

Answer:

Step-by-step

COMPOUND INTEREST FORMULA=AMOUNT - PRINCIPAL

FORMULA FOR FINDING AMOUNT=P(1+R/100)^n

n=NUMBER OF YEARS

HERE,

P=RS.15625

R=8 % PER ANNUM

n= 3 HALF YEARS

A=P(1+R/100)^n = 15625(1+8/100)^3

                           =15625(108/100)^3

                           =15625(108/100*108/100*108/100)

                           = 15625(1259712/1000000)

                           =(15625*1259712)/1000000

                           =19683000000/1000000

                           =RS. 19683

AMOUNT = RS.19683

CI=A-P

CI= RS.19683 -RS.15625

CI =RS.4058