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# Calculate the amount and compound interest on Rs 18000 for 2.5 years at 10% per annum compounded annually.

1    Calculate the amount and compound interest on

(b) Rs 18,000 for  $2\frac{1}{2}$   years at 10% per annum compounded annually.

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Given,

Principal,P =Rs.18000,  Rate,R = 10%   and time period,n = 2.5 years.

We know, Amount when interest is compounded annually = $P(1+\frac{R}{100})^n$

Amount after 2 years at 10% , A = $18000(1+\frac{10}{100})^2$ = Rs.21780

This acts as the principal amount for the next half year.

SI on next 1/2 year at = $\frac{21780\times\frac{1}{2}\times10}{100}$= Rs. 1089

Therefore, Total amount to be paid after 2.5 years = Rs. (21780+1089) = Rs.22869

Now, Compound Interest after 2 years = A - P = Rs.(21780-18000) = Rs. 3780

Therefore, Compound Interest after 2.5 years, CI = Rs. 3780 + SI = Rs.4869

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