Question

Find the intrest for Rs. 10,000 for 2 ½ yrs at 5% per annum compounded annually.​

Answer 1

Interest = Rs. 1297.26

Explanation:

To calculate the final amount, we can use the following formula:

`\boxed{A = P(1 + (r)/(100))^n}`,

where:

A = final amount

P = principal (initial) amount

r = rate

n = time in years,

and then we can subtract the initial amount from the final amount to find the interest.

We have been told in the question that the principal, P = Rs. 10,000; and the time is
`2(1)/(2)` years, therefore n = 2.5. The rate is 5%, therefore r = 5.

Using this information, and the formula above, we can calculate the final amount:

`A = 10000(1 + (5)/(100))^(2.5)`

⇒
`A = 10000(1.05)^(2.5)`

⇒
`A = \bf 11297.26`

Now that we know what the final amount was, we can calculate the interest by subtracting the initial amount from it:

Interest = 11297.26 - 10000

= 1297.26

Therefore the interest was Rs. 1297.26.