Question

Find the compound interest, correct to the nearest rupee, on Rs 2,400 for $2\frac{1}{2}$ years at 5 percent per annum.

Answer 1

For 1^st years

P = Rs. 2400

R = 5%

T = 1 year

A = 2400 + 120 = Rs. 2520

For 2^nd year

P = Rs. 2520

R = 5%

T = 1 year

A = 2520 + 126 = Rs. 2646

For final year,

P = Rs. 2646

R = 5%

T = year

Amount after years = 2646 + 66.15

= Rs. 2712.15

Compound interest = 2712.15 - 2400

= Rs. 312.15