Question

Fine the interest and the amount repaid. Round to the nearest cent when necessary Principal rate. Time 525.00 12% 14 months What is the interest and the amount?

Answer 1

The Amount = 599..23 unit And Compound Interest = 74.23 unit

Explanation:

Given The Principal = 525 unit

The rate of interest = 12%

The time period = 14 months = (1 + (
`(1)/(6)` ) years =
`(7)/(6)` = 1.167 years

Now from compound interest method

Amount = principal
`(1 +(Rate)/(100))^(Time)`

Amount = 525
`(1 +(12)/(100))^(1.167)`

Amount = 525 ( 1.141 )

Amount = 599.23 unit

So, Compound Interest = Amount - principal

Or, CI = 599.23 - 525

Or, CI = 74.23 unit

Hence the Amount = 599..23 unit And Compound Interest = 74.23 unit

Answer