Sangeeta land rupees 40,960 to amar to purchase a shop at 12.5% per annum if the interest is compounded semi annually find the interest paid by Amar after 1 whole 1 upon 2 years
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Principal = 40,960
Rate. = 12.5% p.a.
= 12.5/10*2%
= 25/2%
Time. = 3/2*2years
= 3 years
Amount = p ( 1+ r/100) to the power n
= 40,960(1+25/4*100) to the power 3
= 40,960 ( 1+ 25/400) to the power 3
= 40,960 (425/400) to the power 3
= 40,960*425/400*425/400*425/400
= 10*17*17*17
= 49,130
Compound interest = Amount - Principal
= 49,130 - 40,960
= 8170
Rate. = 12.5% p.a.
= 12.5/10*2%
= 25/2%
Time. = 3/2*2years
= 3 years
Amount = p ( 1+ r/100) to the power n
= 40,960(1+25/4*100) to the power 3
= 40,960 ( 1+ 25/400) to the power 3
= 40,960 (425/400) to the power 3
= 40,960*425/400*425/400*425/400
= 10*17*17*17
= 49,130
Compound interest = Amount - Principal
= 49,130 - 40,960
= 8170
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