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.

Answer :

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


Rate this question :

How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Related Videos
Quiz | Comparing QuantitiesQuiz | Comparing QuantitiesQuiz | Comparing Quantities50 mins
Quiz | Comparing QuantitiesQuiz | Comparing QuantitiesQuiz | Comparing Quantities30 mins
Quiz | PercentageQuiz | PercentageQuiz | Percentage35 mins
Quiz |  Calculating Compound Interest Really Compound?Quiz |  Calculating Compound Interest Really Compound?Quiz | Calculating Compound Interest Really Compound?46 mins
Foundation | Direct & Inverse ProportionsFoundation | Direct & Inverse ProportionsFoundation | Direct & Inverse Proportions57 mins
One Step Ahead of Simple InterestOne Step Ahead of Simple InterestOne Step Ahead of Simple Interest44 mins
Make a Solid Grip on RatiosMake a Solid Grip on RatiosMake a Solid Grip on Ratios36 mins
Quiz | Comparing QuantitiesQuiz | Comparing QuantitiesQuiz | Comparing Quantities47 mins
Smart Revision | Comparing QuantitiesSmart Revision | Comparing QuantitiesSmart Revision | Comparing Quantities45 mins
Ratio and PercentageRatio and PercentageRatio and Percentage28 mins
Try our Mini CourseMaster Important Topics in 7 DaysLearn from IITians, NITians, Doctors & Academic Experts
Dedicated counsellor for each student
24X7 Doubt Resolution
Daily Report Card
Detailed Performance Evaluation
caricature
view all courses