Question

Find the amount when ₹ 6000 is invested for `2 1/2` years at 10% per annum compounded yearly.

Answer 1

Step 1: Amount after 2 years (compound interest)

A₂ = P(1 + r)²

Given:

P = 6000, r = 10% = 0.10

A₂ = 6000(1.10)²

A₂ = 6000 × 1.21

A₂ = 7260

Step 2: Interest for the remaining `1/2` year (simple interest)

SI for 0.5 year = `A_2 xx r xx 1/2`

= `7260 xx 0.10 xx 1/2`

= 7260 × 0.05

= 363

Step 3: Total amount after 2.5 years

A = 7260 + 363

A = 7623