The compound interest on the sum of 15625 at rate 16% per annum compounded annually for 2 years 3 months is
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Answer:
first we calculate compound interest for two years
P = 15625
R = 16%
time = 2 years
A = P(1+R/100)^n
= 15625*(1+16/100)^2
= 15625* (29/25)^2
= 15625*841/625
= 25*841
= 21025
now
P = 21025
R = 16%
time = 3 month = 3/12 years = 1/4 years
interest = PTR/100
= 21025*(1/4)*16/100
= 841
total amount = 21025 + 841 = 21866
compound interest = 21866 - 15625
= 6241 rs.
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