What is the compound interest of p=18000 for 2.5years at 10% per annum

1.	What is the compound interest of p=18000 for 2.5years at 10% per annum
Answer» By using year by year calculationS.I. on Rs. 18000 at\xa010%\xa0per annum for 1 year{tex} = \\frac{{18000 \\times 10 \\times 1}}{{100}} = Rs.1800{/tex}∴ Amount at the end of 1st year= Rs. 18000 + Rs. 1800= Rs. 19800= Principle for 2nd year.S.I. on Rs. 19800 at\xa010% per annum for 1 year{tex} = \\frac{{19800 \\times 10 \\times 1}}{{100}}{/tex}= Rs. 1980∴ Amount at the end of 2nd year= Rs. 19800 + Rs. 1980= Rs. 21780= Principle for 3rd yearS.I. on Rs. 21780 at\xa010%\xa0per annum for {tex}\\frac{1}{2}{/tex}\xa0year{tex} = \\frac{{21780 \\times 10 \\times 1}}{{2 \\times 100}}{/tex}= Rs. 1089∴ Amount at the end of\xa0{tex}2\\frac{1}{2}{/tex}\xa0years= Rs. 21780 + Rs. 1089\xa0= Rs. 22869this is the required amount.Now,C.I. = Rs. 22869 – Rs. 18000= Rs. 4869.

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