Question

using the formula , find the amount on $ 10204 for 3 years at 12½ per annum compounded annually ​

Answer 1

= 4,577.3438 Rs.

= 15,377.3438 - 10,800

given, P = 10,800 Rs. T = 3 years and R = 12 1/2 % = 25/2 % per annum

use formula,

A=P\left(1+\frac{R}{100}\right)^T

A=10800\left(1+\frac{\frac{25}{2}}{100}\right)^3

or,

or,

A=10800\left(1+\frac{25}{200}\right)^3

or,

A=10800\left(1+\frac{1}{8}\right)^3

or,

A=10800\left(\frac{9}{8}\right)^3

or, A = 10800 × 9 × 9 × 9/(8 × 8 × 8)

now, compound interest = A - P

= 15,377.3438 Rs.✔️✔️✔️