Question

find compound interest paid when a sum of Rupees 10,000 is invested for 1year & 3 months at 17/2% per annum compounded annualy. ​

Answer 1

Rs 1,073.56

Explanation:

The computation of the compound interest is shown below:

Compound interest = Principal (1 + rate of interest)^time period - Principal

= Rs 10,000 × (1 + 17 ÷ 2%)^1.25 - Rs 10,000

= Rs 10,000 × (1 + 0.085)^1.25 - Rs 10,000

= Rs 11073.56 - Rs 10,000

= Rs 1,073.56

The 1.25 come from

1 year & 3 months

= 5 by 4