Question

Principal$=\text{Rs.}9600$, Rate $=7\frac{1}{2}\%p.a,$ and time $=5\text{months}$. Calculate the compound interest .

Answer 1

$P=\text{Rs.}9600$

$r=7\frac{1}{2}\%p.a$

$t=5\text{months}=\frac{5}{12}\text{months}$.

Rate of interest in $12$ months $=7.5\%$

Rate of interest of $1$ month$=\frac{7.5}{12}\%=0.625\%$

Amount, $A=P{(1+\frac{R}{100})}^t$

$A=9600{(1+\frac{0.625}{100})}^5$

$A=\text{Rs.}9600\times 1.032$

$A=\text{Rs.}9903.77$

Compound interest $=A-P=\text{Rs.}303.77$