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Mathematics

Calculate the amount of ₹ 31,250 at the end of 2122\dfrac{1}{2} years, compounded annually at 8% per annum.

Compound Interest

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Answer

For first year :

P = ₹ 31,250

T = 1 year

R = 8%

I = P×R×T100\dfrac{P \times R \times T}{100}

=31250×8×1100= \dfrac{31250 \times 8 \times 1}{100} = ₹ 2,500.

Amount = P + I = ₹ 31,250 + ₹ 2,500 = ₹ 33,750.

For second year :

P = ₹ 33,750

T = 1 year

R = 8%

I = P×R×T100\dfrac{P \times R \times T}{100}

=33750×8×1100= \dfrac{33750 \times 8 \times 1}{100} = ₹ 2,700.

Amount = P + I = ₹ 33,750 + ₹ 2,700 = ₹ 36,450.

For next 12\dfrac{1}{2} year :

P = ₹ 36,450

T = 12\dfrac{1}{2} year

R = 8%

I = P×R×T100\dfrac{P \times R \times T}{100}

=36450×8×12100= \dfrac{36450 \times 8 \times \dfrac{1}{2}}{100}

=291600200= \dfrac{291600}{200} = ₹ 1,458.

Amount = P + I = ₹ 36,450 + ₹ 1,458 = ₹ 37,908.

Hence, final amount = ₹ 37,908.

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