Question

Principal$=Rs1500$, rate $=12\%p.a,$ and time $=3$ years $3$ months.Calculate the compound interest

Answer 1

Case$I$

$P=Rs1500$ $r=12\%p.a$ $t=1year$

Interest $=\frac{1500\times 12\times 1}{100}=Rs180$.

$\therefore A=Rs1680$.

Case$II$

$P=Rs1680$ $r=12\%p.a$ $t=1year$

Interest $=\frac{1680\times 12\times 1}{100}=Rs201$.

$\therefore A=Rs1881.60$.

Case$III$

$P=Rs1881.60$ $r=12\%p.a$ $t=1year$

Interest $=\frac{1881.60\times 12\times 1}{100}=Rs225.80$.

$\therefore A=Rs2107.40$.

Case$IV$

$P=Rs2107.40$ $r=12\%p.a$ $t=\frac{3}{12}=\frac{1}{4}years$

Interest $=\frac{2107.40\times 12}{100}\times \frac{1}{4}=Rs63.22$.

$\therefore A=Rs2170.62$.

Compound interest is $Rs670.62$