Question

Find the amount and the compound interest payable annually on the following :

Rs.10000 for 2`(1)/(2)` years at 6% per annum.

Answer 1

Rs.10000 for 2`(1)/(2)` years at 6% per annum.
Here P₁ = Rs.10000 and r = 6%
So, Amount after 1 year
= `"P"(1 + "r"/100)`

= `10000(1 + 6/100)`

= `10000 xx (106)/(100)` = 10600
Thus, P₂ = Rs.10600 and r = 6%
So, Amount after 2 year
= `"P"(1 + "r"/100)`

= `10600(1 + 6/100)`

= `10600 xx (106)/(100)` = 11236
Thus, principle for the next 6 months = Rs.11236
Interest for the next 6 months
= `(11236 xx 6 xx 6)/(100 xx 12)`
= 337.08
Therefore, amount after 1`(1)/(2)` years
= Rs.11236 + Rs.337.08
= Rs.11573.08
And CI
= A - P
= Rs.11573.08 - Rs.10000
= Rs.1573.08.