Q. 15.0( 2 Votes )

Find the Amount and Compound Interest in the following cases:


Answer :

Amount =

P is the principle


r is the rate of interest


n is the time period in terms of years


(i) Principle = 1000


Rate of interest per annum = 5%


Time = 3 years


Amount =


=


= 1,157.625


Compound Interest = Amount – Principle


= 1000 – 1,157.625


= 157.625


(ii) Principle = 4000


Rate of interest per annum = 10%


Time = 2 years


Amount =


=


= 4,840


Compound Interest = Amount – Principle


= 4000 – 4,840


= 840


(iii) Principle = 18,000


Rate of interest per annum = 10%


Time = years


We are going to find the compound interest year by year


For 1st year


Amount =


=


= 19,800


Now 19,800 become the principle amount


For 2nd year


Amount =


=


= 21,780


Amount =


P is the principle


r is the rate of interest


n is the time period in terms of years


For half yearly


Amount =


=


= 22,869


Compound Interest = Amount – Principle


= 22,869 – 18,000


= 4,869


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