Question

The compound interest on ₹7500 for 1 year at 8.5% per annum which is compounded monthly is​

Answer 1

Answer:

Step-by-step explanation:

The compound Interest & amount will be Rs.612 & Rs.8112 .

Answer 2

Given:

Amount of ₹7500 is being compounded monthly for 1 year at 8.5% p.a.

To Find:

The compound interest after 1 year

Solution:

To find the compound interest which is being compounded monthly we need to look to a formula slightly different from the basic formula used to calculate compound interest i.e.

                                         $A=P(1+\frac{r}{n} )^{nt}$

                            where,

                                        Amount=$A$

                                        Principal=$P$

                                        Rate of interest=$r$

                                        Time period=$t$

                                         No. of times interest applied=$n$

                                         in the given time period

Now putting every values in the formula i.e.

$P$=7500

$r$=8.5%

$t$=1 year

$n$=12

                                      $A=7500(1+\frac{0.085}{12} )^{12} \\ =7500(1.0070833)^{12} \\ =7500*1.0883909\\ =8162.93$

So, the amount after a year will be ₹8162.93.

And the interest will be

                                       $I=8162.93-7500\\ =662.93$

Hence, the Compound Interest will be ₹662.93.