Calculate the amount of rs 31,250 at the end of 2½ years compounded annually at 8% per annum. with step by step explanation! nonsense answers would be reported!!
Now we will take out the amount for 1/2 years for which the rate would also be deducted to half which means now rate for 1/2 years is 4% with principal= 36450
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Step-by-step explanation:
So first we fill take out the Amount for 2 years.
Which would be:
36450
Now we will take out the amount for 1/2 years for which the rate would also be deducted to half which means now rate for 1/2 years is 4% with principal= 36450
So amount for 1/2 years for 4% rate is:
= 37908
Answer:
Given:
Present value =₹ 31250
Interest rate =8% per annum
Time =1
2
1
year =3/2 year and compounded half-yearly
To find the amount we have the formula,
Amount (A)=P(1+(r/100))
n
where P is present value, r is rate of interest, n is time in years.
Now substituting the values in above formula we get,
∴A=31250(1+(8/2)/100)
3
⇒A=31250(1+4/100)
3
⇒A=31250(1+1/25)
3
⇒A=31250(26/25)
3
⇒A=31250×17576/15625
⇒A=₹ 35152
∴ Compound interest =A–P
=35452–31250=₹ 3902
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