Mathematics
Calculate the amount of ₹ 31,250 at the end of 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 =
= ₹ 2,500.
Amount = P + I = ₹ 31,250 + ₹ 2,500 = ₹ 33,750.
For second year :
P = ₹ 33,750
T = 1 year
R = 8%
I =
= ₹ 2,700.
Amount = P + I = ₹ 33,750 + ₹ 2,700 = ₹ 36,450.
For next year :
P = ₹ 36,450
T = year
R = 8%
I =
= ₹ 1,458.
Amount = P + I = ₹ 36,450 + ₹ 1,458 = ₹ 37,908.
Hence, final amount = ₹ 37,908.
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