Question

Mayank deposited rupees 500 in a post office for one year at 12 whole 1 upon 2 percent per annum find the compound interest at the end of the first year also find the difference between compound interest and simple interest at the end of the first year

Answer 1

Principal = rs. 500

Rate of interest = 12 1/2% = 25/2% p.a.

Time = 1 year

CI = P [( 1+R/100)]^T

CI = 500 [( 1+25/2*100)]^1

CI = 500 [( 1+1/8)]

CI = 500 * 9/8

CI = rs. 562.5

So CI after 1 year = rs. 562.5

Hope this will helps you.....