Question

Calculate the amount and the compound interest on:

Rs. 8,000 in `2 1/2` years at 15% per year.

Answer 1

For 1^st year,

P = Rs. 8,000; R = 15%, and T = 1 year

∴ Interest = Rs. `[8,000 xx 15 xx 1]/[ 100 ]`

= Rs. 1200

And, amount = Rs. (8,000 + 1200)

= Rs. 9,200

For 2^nd year,

P = Rs. 9,200; R = 15%, and T = 1 year

∴ Interest = Rs. `(9,200 xx 15 xx 1)/100`

= Rs. 1,380

And, amount = Rs. (9,200 + 1,380)

= Rs. 10,580

For the last `1/2` year,

P = Rs. 10,580 ; R = 15% and T = `1/2` year

∴ Interest = Rs. `(10,580 xx 15 xx 1)/(100 xx 2)`

= Rs. 793.50

And, Amount = Rs. (10,580 + 793.50)

= Rs. 11373.50

∴ C.I. accrued = Final amount - Intitial Principal

= Rs. (11,373.50 - 8,000)

= Rs. 3373.50