Find the compound interest paid when a sum of Rs. 10000 is invested for 2 year at 8% per annum compounded annually
1664
10000
1100
none
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Answer:
For first year
P=10000,R=8.5%, T=1
Interest =
100
PRT
=
100
(10000×8.5×1)
=850
Amount = Interest + Principle =10000+850=Rs.10850
For second year principle will be amount of previous year (since interest is compounded)
P=10850,R=8.5%, T=3months =
12
3
years=0.25years
Interest =
100
PRT
=
100
(10850×8.5×0.25)
=Rs.230.5625
Total interest =850+230.5625=Rs.1080.5625
∴ Compound interest paid after 1 year and 3months is Rs.1080.5625
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