Question

find the compound interest paid when a sum of rs 10000 is invested for 1 year and 3 months at 8 1/2% per annum compounded annually

Answer 1

hope this will help you

Answer 2

Answer:

CI = 1073.557 Rs.

Step-by-step explanation:

In the question,

Principal Amount, P = 10000 Rs.

Time, t = 1 year 3 months = 5/4 = 1.25 years

Rate of Interest, r = 17/2 = 8.5%

So,

From the formula of Compound Interest, we can say that,

$CI=P(1+\frac{r}{100})^{t}-P$

Therefore, on putting the respective values in the given equation of the Compound Interest, we get,

$CI=P(1+\frac{r}{100})^{t}-P\\CI=10000(1+0.085)^{1.25}-10000\\CI=1073.557$

Therefore, the Compound Interest is given by,

CI = 1073.557 Rs.