Question

Calculate the amount and the compound interest for the following:

Rs.22, 500 at 12 °/o p.a. in `1 3/4` years

Answer 1

Here, P = Rs.22, 500; r = 12 °/o p.a.; t = `1 3/4` years

For the first year: t = 1 year

S.I. = `("P" xx "r" xx "t")/100`

S.I. = `("Rs"  22500 xx 12 xx 1)/100`

S.l. = Rs2, 700

A=P+S.I.

=Rs (22,500 + 2,700) =Rs 25,200 =new principal

For the second year: t = 3/4 year; P=Rs 25,200

S.I. = `("P" xx "r" xx "t")/100`

S.I. = `("Rs"  25200 xx 12 xx 3)/(100 xx 4)`

S.I. = Rs 2268

A=P+S.I.

A=Rs (25,200 + 2,268) =Rs 27,468

C.l. = Interest in first year + interest in second year

C.l.= Rs (2,700 + 2,268) =Rs 4,968