Anil borrowed a sum of Rs. 9600 to install a handpump in his dairy. If

1.	Anil borrowed a sum of Rs. 9600 to install a handpump in his dairy. If the rate of interest is 5 1/2 % per annum compounded annually, determine the compound interest which Anil will have to pay after 3 years.
Answer» Given, Principal = Rs. 9600 Rate of interest \(={5}\frac{1}{2}\text%\)\(=\frac{11}{2}\text%\) annually Time = 3 years Hence, Compound interest \(={P}[({1}+\frac{R}{100})^T-{1}]\) \(={9600}[({1}+\frac{11}{2\times100})^3-{1}]\) = 9600× 0.174 = Rs.1672.72 So, Compound interest paid by Anil after 3 years = Rs.1672.72

Anil borrowed a sum of Rs. 9600 to install a handpump in his dairy. If the rate of interest is 5 1/2 % per annum compounded annually, determine the compound interest which Anil will have to pay after 3 years.

Answer»

Given,
Principal = Rs. 9600

Rate of interest

\(={5}\frac{1}{2}\text%\)\(=\frac{11}{2}\text%\) annually

Time = 3 years

Hence,
Compound interest

\(={P}[({1}+\frac{R}{100})^T-{1}]\)

\(={9600}[({1}+\frac{11}{2\times100})^3-{1}]\)

= 9600× 0.174 = Rs.1672.72

So,
Compound interest paid by Anil after 3 years = Rs.1672.72