Question

Find the amount and the compound interest on 2000 at 10% p.a. for $2\frac{1}{2}$ years, compounded annually.

Answer 1

$P=Rs$ $2000$

$R=10$%

$T=2^{1/2}$ years $=\frac{5}{2}$ years.

$A=P{(1+\frac{R}{100})}^T$

$=2000{(1+\frac{10}{100})}^{5/2}$

$=2000{\left(\frac{11}{10}\right)}^{5/2}$

$=2538.1$

$\simeq$ $2538$

$C.I=A-P$

$=2538-2000$

$=538$.

Hence Amount $=Rs$ $2538$

$C.I=Rs$ $538$