Question

Seema borrowed Rs.$8000$ from Sanya for $2$ years at $12\frac{1}{2}\%$ per annum. What compound interest Seema pay to Sanya?

Answer 1

We know,

$A=P{(1+\frac{r}{100})}^n$

Here, $r=12\frac{1}{2}\%=\frac{25}{2}\%$ and $n=2$

$A=8,000{(1+\frac{25}{2\times 100})}^2$

$=10,125$

$Interest=A-P$

$=10,125-8000$

$=2,125$