1 Calculate the amount and compound interest on
(b) Rs 18,000 for years at 10% per annum compounded annually.
Principal,P =Rs.18000, Rate,R = 10% and time period,n = 2.5 years.
We know, Amount when interest is compounded annually =
Amount after 2 years at 10% , A = = Rs.21780
This acts as the principal amount for the next half year.
SI on next 1/2 year at = = 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