question_answer

Calculate the amount and compound interest on Rs. 10,800 for 3 years at \[12\frac{1}{2}\]% per annum compounded is annually.

Answer:

Here, P = Rs.10800, T =3 years,

R \[=12\frac{1}{2}%\]

p.a. \[=\frac{25}{2}%\]p.a.

We have,

\[A=P{{\left( 1+\frac{R}{100} \right)}^{n}}\]

\[=Rs.\,10800{{\left( 1+\frac{25}{2\times 100} \right)}^{3}}\]

[\[\because \] Interest compounded annually, \[\therefore \] n = 3]

\[=Rs.\,10800{{\left( \frac{225}{200} \right)}^{3}}\]\

\[=Rs.\,10800\times \frac{225}{200}\times \frac{225}{200}\times \frac{225}{200}\]

\[=Rs.\,\frac{675\times 9\times 9\times 9}{4\times 8}\]

\[=Rs.\,\frac{492075}{32}\]

\[\therefore \]      Amount = Rs. 15377.34

=Rs. 15377.34

Now,               Compound Interest

= Rs. 15377.34 - Rs.10800

= Rs. 4577.34