Question

What is compound interest on r.s.7500 for 3.5 years at 5.5% p.a

Answer 1

Given Principal = 7500, n = 3.5 years, R = 5.5.

We know that A = P(1 + r/1000^n

                            = 7500(1 + 5.5/100)^3.5

                            = 7500 * (1.055)^3.5

                            = 7500 * 1.20610

                            = 9045.756.


We know that CI = A - P

                             = 9045.756 - 7500

                             = 1545.756.


Therefore CI = 1545.756.


Hope this helps!