Question

Principal = Rs 62500, rate = 12 % p.a. and time = 2¹/2 years.compound interest

Answer 1

Compound interest is 20470.7611

Step-by-step explanation:

Given,

Principal, p = 62500

Rate, r = 12 %

Time, t =$2 \frac{1}{2}$ = 2.5 years

We know that,

$A = p\times \left({1 + \frac{r}{100})^t$

$A = 62500\times\left( 1 + \frac{12}{100})^{2.5}$

$A = 62500\times\left( \frac{112}{100})^{2.5}$

$A = 62500\times (1.12)^{2.5}$

$A = 62500\times 1.32753$

A = 82970.761

Amount =  82970.761

Compound interest = 82970.761 - 62500

Compound interest = 20470.7611