Question

If P = INR. 1,000, R = 5% p.a, n = 4; What is Amount and C.I. is

Answer 1

Answer:

=Rs 1000, R=5% p.a., n=4

Interest for the 1

st

year =Rs

100

1000×5×1

=Rs 50

Amount after 1

st

year =Rs 1000+Rs 50=Rs 1050

Interest for the 2

nd

year =Rs

100

1050×5×1

=Rs 52.5

Amount after 2

nd

year =Rs 1050+Rs 52.5=Rs 1102.5

Interest for the 3

rd

year =Rs

100

1102.5×5×1

=Rs 55.125

Amount after 3

rd

year =Rs 1102.5+Rs 55.125=Rs 1157.625

Interest for the 4

th

year =Rs

100

1157.625×5×1

=Rs 57.88125

Amount after 1

st

year =Rs 1157.625+Rs 57.88125=Rs 1215.50

∴ Compound Interest =Rs 1215.50−Rs 1000=Rs 215.50