Question

What is the compound interest on a sum of 12,000 for 2×5/8
years at 8° p.a., when the interest is compounded annually?
ans 2697​

Answer 1

Answer:

Step-by-step explanation:

12000(1+8/100)*1*14

12000(1.08)

=12960

12960(1.08)*1/4

12960*0.27

=2637

Answer 2

The amount at the end of 'n' years of investing in compound interest.

$A = P(1 + \frac{r}{100} {)}^{n}$

$here,$

$P = 12000$

$n = 3$

$r = 5\%$

$A = 12000(1 + \frac{5}{100} {)}^{3}$

$= rs.13891.5$

now, compound interest

$CI = amount - principle \\ = 13891.5 - 12000 \\ \boxed{= rs.1891.5}$