Find the compound interest on ₹7500 for 2¼ years at 6% per annum compounded annually.
Answers
Answered by
2
Solution-
We will first calculate the amount after 2 years at 6% per annum (p.a.)
P = ₹7500, R = 6%, n= 2years
Thus, A = P(1+R/100)ⁿ = 7500 (1+6/100)²
= 7500 (1+3/100)²
= 7500 (53/50)² =3 × 53 × 53 = ₹8427
Thus, the amount and the end of 2 years is ₹8427. This when the principal for the remaining 1/4 years.
P = ₹8427 for T = 1/4 years at R = 6% p.a.
Simple interest I = P×R×T/100 = (8427×6×¼)/100
= 25281/200 =₹ 126.41
Thus, amount and the end 2¼ years
= ₹ (8427 + 126.41) = ₹8553.41
Thus, compounded interest - principal
= ₹ (8553.41 - 7500) = ₹ 1053.41
Hence the compound interest
= ₹1053.41
Similar questions