Question

Use this↑ formula to solve this Question↓
Find the compound interest on ₹ 12600 for 2 years 4 months at 10% per annum , compounded yearly. ​

Answer 1

Answer:

₹7727.58

Step-by-step explanation:

P = ₹12600

r = 10% per annum

For two years, n = 2

Now Amount $= P(1 + \frac{r}{100} )^{n}$ $= 12600(1 + \frac{10}{100} )^{2}$ = ₹12600x1.1x1.1 = ₹12600x1.21

∴ Compounded Interest in 2 years = Amount in two years - P

= ₹12600(1.21 - 1) = ₹12600x0.21

Now additional interest in 4 months after the completion of two years:

=Amount after two years x $\frac{10}{100}$ x $\frac{4}{12}$ = ₹12600x1.21x$\frac{1}{3}$

∴ Compounded Interest in 2 years 4 months = ₹12600x0.21 + ₹12600x1.21x$\frac{1}{3}$

= ₹12600(0.21 + 0.4033) = ₹12600x0.6133 = ₹7727.58