Q. 74.2( 56 Votes )

# Find Compound interest paid when a sum of Rs. 10000 is invested for 1 year and 3 months at 8 % per annum compounded annually.

Principal (P) = Rs. 10000

Rate of interest (R) = 8.5%

Time period (T) = 1year 3 months

For T = 1 year,

I = Rs. 850

Interest for 1 year is Rs. 850

Amount at the end of 1 year = Principal + interest

Amount = 10000+850

= 10850

Amount at the end of 1 year is Rs. 10850

For T = 3 months =

I = Rs. 230.56

Interest for year is Rs. 230.56

Amount at the end of year = Principal + interest

Amount = 10850+230.56

= 11080.56

Amount at the end of year is Rs. 11080.56

Total interest for 1.3 year = Interest for 1 year + Interest for year

= 850+230.56

= 1080.56

The compound interest paid is Rs. 1080.56

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