# Calculate the Amount and the Compound Interest for the Following: - Mathematics

Sum

Calculate the amount and the compound interest for the following:

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

#### Solution

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

Concept: Concept of Compound Interest - Compound Interest as a Repeated Simple Interest Computation with a Growing Principal
Is there an error in this question or solution?

#### APPEARS IN

Frank ICSE Class 10 Mathematics Part 2
Chapter 1 Compound Interest
Exercise 1.1 | Q 1.08 | Page 5