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Last updated at Nov. 12, 2018 by Teachoo
Ex 8.3, 1 (a) Calculate the amount and compound interest on (a) Rs 10,800 for 3 years at 12 1/2 % per annum compounded annually Given, Principal (P) = 10, 800 Time = 3 years Rate (R) = 12 1/2 per Annum compounded Annually. = 25/2 % Amount (A) = P (1+π /100)^π = 10,800 (1+(25/2)/100)^3 = 10,800 (1+25/(2 Γ 100))^3 = 10,800 (1+1/(2 Γ4))^3 = 10,800 (1+1/8)^3 = 10,800 ((8 + 1)/8)^3 = 10,800 Γ (9/8)^3 = 10,800 Γ (9 Γ 9 Γ 9 )/(8 Γ 8 Γ 8 ) = 5400 Γ (9 Γ 9 Γ 9 )/(4 Γ 8 Γ 8 ) = 2700 Γ (9 Γ 9 Γ 9 )/(2 Γ 8 Γ8 ) = 2700 Γ (81 Γ 9 )/(2 Γ 64 ) = 2700 Γ 729/(128 ) = 2700 Γ 729/(128 ) = 1968300/(128 ) = 15377.34 β΄ Amount after 3 years = Rs 15,377.34 Now, Amount = Principal + Interest 15377.34 = 10800 + Interest 15377.34 β 10800 + Interest 4577.34 = Interest β΄ Interest = Rs 4,577.34