Question

Find the compound interest on Rs.96000 for 2 years 3 months at 5% per annum
interest being compounded annually.​

Answer 1

Answer:

Rs. 11163

Step-by-step explanation:

Concept= Compound Interest

Given= The principal amount, rate and time

To find= The Compound Interest

Explanation=

We have been given to find the compound interest on Rs.96000 for 2 years 3 months at 5% per annum.

We know that Compound Interest is calculated as

$P(1+r/100)^{t} - P$

here P= Principal amount

R= Rate of interest per annum

T= time in Years

when the time is a whole number the formula remains same but when it is half yearly the value of t changes to 2t and in quarterly 4t.

So P= Rs. 96000

r= 5% p.a

t= 2 years 3 months = 2+ 3/12 = 2 + 1/4 years

Compound interest = $P(1+r/100)^{t} (1+r/400)^{4t}$ -P

here, 4t= 4*1/4=1

C.I = 96000(1+ 5/100)²(1+ 5/400)¹ - 96000

C.I = 96000(1+ 1/20)²(1+ 5/400)¹ - 96000

C.I = 96000*(21/20)*(21/20)*(405)/400  - 96000

C.I =  107163 - 96000= 11163

Therefore the Compound Interest is Rs. 11163

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