Question

Using the ready reckoner, find the compound interest on Principal $Rs.15,000$ for $4$ years at $6.5\%$ p.a.

Answer 1

Given : $P=15,000$ Rs., $T=4,R=6.5\%$

Let $P=1$

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

$={(1+\frac{6.5}{100})}^4$

$=1.2865$

C.I. $=1.2865-1=0.2865$

Now, the interest on Rs. $1$ is $0.2865$ Rs.

Then, the compound interest on Rs. $15,000$ for $4$ years at the rate $6.5\%$ will be

$=15000\times 0.2865=4297.5$

Hence, the compound interest is Rs. $4,298$.