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Last updated at Nov. 12, 2018 by Teachoo

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Ex 8.3, 1 (b) Calculate the amount and compound interest on (b) Rs 18,000 for 2 1/2 years at 10% per annum compounded annually. Given, Principal = 18,000 Time (n) = 2 1/2 years Rate (R) = 10 % per Annum. Since n is in fraction, we use the formula. Compound interest for 2 1/2 years = Compound interest for 2 years + Simple interest for 1/2 ๐ฆ๐๐๐. Compound interest for 2 years P = 18,000 N = 2 R = 10% Amount = P (1+๐ /100)^๐ Putting values = 18,000 (1+10/100)^2 = 18000 (1+1/10)^2 = 18000 ((10 + 1)/10)^2 = 18000 (11/10)^2 = 18000 ร 121/100 = 180 ร 121 = 21,780 Since Amount = Principal + Interest 21,780 = 18000 + Interest 21,780 โ 18,000 = Interest 3780 = Interest Interest = 3780 โด Interest for 2 years = Rs 3780 & Amount after 2 years = Rs 21780 Simple interest for the next ๐/๐ year Principal will be the amount after 1 year P = 21,780 R = 10% T = 1/2 year Interest = (๐ ร๐ ร ๐)/100 = (21780 ร 10 ร 1/2)/100 = (21780 ร 10)/(2 ร 100) = 21780/2 = 1089 โด Simple interest for next 1/2 year = Rs 1089 Now, Interest for 2 1/2 years = Compound interest for 2 years + Simple Interest for 1/2 year = 3780 + 1089 = 4869 Amount = Principal + interest = 18000 + 4869 = 22869 โด Amount = Rs 22,869 & Interest = Rs 4,869

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Davneet Singh

Davneet Singh is a graduate from Indian Institute of Technology, Kanpur. He has been teaching from the past 9 years. He provides courses for Maths and Science at Teachoo.