Q. 44.1( 29 Votes )

Rs. 10240 for 3 years at 12% per annum compounded annually.

Answer :

Present value = Rs.10240


Interest rate = (25/2) % per annum


Time = 3 years


Amount (A) = P (1 + R/100)n [Where, P = Present value


R = Annual interest rate


n = Time in years]


A = 10240 [1 + (25/2)/100]3


A = 10240 [1 + 1/8]3


A = 10240 [9/8]3


A = 10240 × 9/8 × 9/8 × 9/8


A = 10240 × 729/512


A = 20 × 729


A = 14580


Amount = Rs.14580


Compound interest = Rs.(14580 – 10240)


= Rs.4340


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