Question

Find the compound interest on ₹ 31,250 at 12% pa for 2 1/2 years

pls give step by step explanation

Answer 1

42,183

Explanation:

We will use the Continuous Compounding Interest since a regular interval was not stated.

P(t) = Pe^(rt)

We will plug in the variables to the formula

P(t) = 31250 * e^(.12 * 2.5)

We can simplify and evaluate the compound interest.

P(t) = 42183.08