Question

Calculate the amount and the compound interest for the following:

Rs.25, 000 at `8 2/5 %` p.a. in `1 1/3` years

Answer 1

Here, P = Rs.25, 000; r = `8 2/5` %  p.a. =42/5 % ;

t = `1 1/3` years

For the first year: t = 1 year

S.I. = `("P" xx "r" xx "t")/100`

S.I. = `("Rs"  25000 xx 42 xx 1)/(100 xx 5)`

S.I. = Rs2, 100

A=P+S.I.

=Rs (25,000 + 2, 100) = Rs 27, 100 = new principal

For the second year: t = 1/3 year; P=Rs 27,100

S.I. = `("P" xx "r" xx "t")/100`

S.I. = `("Rs"  27100 xx 42 xx 1)/(100 xx 5 xx 3)`

S.I. = Rs758.80

A=P+S.I.

A=Rs (27, 100 + 758.80) =Rs 27,858.80

C.I. = Interest in first year +interest in second year

C.I.= Rs (2, 100 + 758.80) =Rs 2,858.80