What sum will become ₹2025 in 2 years 12.5 per annum compound interest?
(Please do it with the steps)
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Solution :
Principal ( P ) = Rs 2025
Rate of interest ( r ) = 12.5% per annum
Time ( T ) = 2 years
Number of times Interest paid (n) = 2
Let the amount = A
A = P( 1 + r/100 )ⁿ
= 2025( 1 + 12.5/100 )²
= 2025( 1 + 1/8 )²
= 2025 ( 9/8 )²
= 2025 × 9/8 × 9/8
= Rs 2562.89
Therefore ,
Compound Interest = A - P
= Rs2562.89 - Rs 2025
= Rs 537.89
••••
Principal ( P ) = Rs 2025
Rate of interest ( r ) = 12.5% per annum
Time ( T ) = 2 years
Number of times Interest paid (n) = 2
Let the amount = A
A = P( 1 + r/100 )ⁿ
= 2025( 1 + 12.5/100 )²
= 2025( 1 + 1/8 )²
= 2025 ( 9/8 )²
= 2025 × 9/8 × 9/8
= Rs 2562.89
Therefore ,
Compound Interest = A - P
= Rs2562.89 - Rs 2025
= Rs 537.89
••••
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