Question

Find compounded interest paid when a sum of $Rs.10,000$ is invested for $1$ year and $3$ months at $17/2\%$ per annum compounded annually.

Answer 1

$P=Rs.10,000$

$R=\frac{17}{2}$% p.a

$T=1year3months$

Amount at the end of $1$ year$=P{(1+\frac{R}{100})}^n$

$=10000{(1+\frac{17}{200})}^1$

$=10000\times \frac{217}{200}$

$=Rs.10850$

$S.I$ for $3$ months $=\frac{10850\times \frac{3}{12}\times \frac{17}{2}}{100}$

$=\frac{10850}{100}\times \frac{1}{4}\times \frac{17}{2}$

$=Rs.230.56$

$\therefore Amount=10850+230.56=Rs.11080.56$

$C.I=A-P=11080.56-10000=Rs.1080.56$