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2 years ago

1.Find the compound interest on Rs25000 for 3 years at 10% per annum ,Compounded annually.

Mathematics

1 answer:

LekaFEV [45]2 years ago

6 0

Answer:

The compound interest is Rs8275

Step-by-step explanation:

The rule of the compound interest is A = P $(1+\frac{r}{n})^{nr}$ , where

A is the new amount

P is the initial amount

r is the interest rate in decimal

n is the number of periods

t is the time

The interest I = A - P

∵ The amount of investment is Rs25000 for 3 years

∴ P = 25000

∴ t = 3

∵ The rate of interest is 10% per annum, compounded annually

∴ r = 10% = 10 ÷ 100 = 0.1

∴ n = 1 ⇒ compounded annually

→ Substitute these value in the 1st rule above to find the new amount

∵ A = 25000 $(1+\frac{0.1}{1})^{1(3)}$

∴ A = 25000 $(1.1)^{3}$

∴ A = Rs33275

→ Use the 2nd rule above to find the interest

∵ I = 33275 - 25000

∴ I = 8275

∴ The compound interest is Rs8275

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