Answer:
Amount
Rs 6345.30
Compound interest
Rs 1,345.30
Step-by-step explanation:
Here in this question, we are interested in calculating the amount and the compound interest on the value given.
To calculate the amount, we use the formula below;
A = P(1 + r/n)^nt
Where; A is the amount which we want to calculate
P is the principal which is Rs 5,000
r is the interest rate per annum = 10% = 10/100 = 0.1
n is the number of times per year in which it is compounded ( since it is annually, then it is 1)
t is the number of years which is 2.5 years( kindly know that 6 months is same 1/2 year , so 6 months is same as 0.5, and thus 2 years 6 months becomes 2.5 years)
now let’s substitute all these values;
A = 5000(1 + 0.1/1)^(1*2.5)
A = 5000(1 + 0.1)^2.5
A = 5000(1.1)^2.5
A = 6,345.2935314294
This is approximately Rs 6,345.30
The second part of the question asks to calculate compound interest
Mathematically ;compound interest = Amount - principal
= 6345.3 - 5000 = Rs 1,345.30
