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adelina 88 [10]
2 years ago
12

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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