Find the amount and compound interest on ₹ 10240 for 3 years at

1.	Find the amount and compound interest on ₹ 10240 for 3 years at 12 ½ % per annum compounded annually.
Answer» Given: Present value= ₹ 10240 Interest rate= 12 ½ % per annum = 25/2% Time=3 years To find the amount we have the formula, Amount (A) = P (1+(R/100))ⁿ Where P is present value, r is rate of interest, n is time in years. Now substituting the values in above formula we get, ∴ A = 10240 (1 + (25/2)/100)³ ⇒ A = 10240 (1+1/8)³ ⇒ A = 10240 (9/8)³ ⇒ A = 31250 × 729/512 = 20 × 729 ⇒ A = ₹ 14580 ∴ Compound interest = A – P = 14580 – 10240= ₹ 4340

Find the amount and compound interest on ₹ 10240 for 3 years at 12 ½ % per annum compounded annually.

Answer»

Given:

Present value= ₹ 10240

Interest rate= 12 ½ % per annum = 25/2%

Time=3 years

To find the amount we have the formula,

Amount (A) = P (1+(R/100))ⁿ

Where P is present value, r is rate of interest, n is time in years.

Now substituting the values in above formula we get,

∴ A = 10240 (1 + (25/2)/100)³

⇒ A = 10240 (1+1/8)³

⇒ A = 10240 (9/8)³

⇒ A = 31250 × 729/512 = 20 × 729

⇒ A = ₹ 14580

∴ Compound interest = A – P

= 14580 – 10240= ₹ 4340