1.

Find the compound interest on ₹ 3200 at 2.5% p.a for 2 years, compounded annually.

Answer»

Principal (P) = ₹ 3200

r = 2.5% p.a

n = 2 years comp, annually

∴ Amount (A) = (1 + r/100)n = (1 + 2.5/100)2

= 3200 x (1.025)2 = 3362

Compound interest (Cl) = Amount – Principal 

= 3362 – 3200 

= ₹ 162



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