India Site

1. Calculate the amount and the compound interest for each of the following: (a) ₹ $7,500$ at $12%$ p.a. in $3$ years. (b) ₹ $13,500$ at $10% p.a.$ in $2$ years.

(a) $7,500$ at $12%$ p.a. in $3$ years.

Solution:-

Principal = P

Rate = R

Time = T   

Given :

Principal, P = ₹ $7,500$, Rate, r = $12% p.a.,$ Time, t = 3 years

For the first year, t = $1$ year

S.I. = (P × r × t)/$100$

= $(7,500\times 12\times 1)/100$.

= ₹ $900$

A = P + S.I.

= $7,500 + 900$

= ₹ $8,400$

New principal is ₹ 8,400.

For the second year, t = $1$ year, p = ₹ $8,400$

S.I. = (P × r × t)/$100$

= $(8,400\times 12\times 1)/100$

= ₹ $1,008$

A = P + S.I.

= $8,400 + 1,008$

= ₹ $9,408$

New principal is ₹ $9,408$.

For the Third year, t = $1$ year, p = ₹ $9,408$

S.I. = (P × r × t)/$100$

= $(9,408\times 12\times 1)/100$

= ₹ $1,128.96$

A = P + S.I.

= $9,408 + 1,128.96$

= ₹ $10,536.96$

C.I. = Interest in first year + interest in second year + interest in third year

= ₹ $(900 + 1,008 + 1,128.96)$

= ₹ $3,036.96$

Solution:-

P = ₹ $13,500$, r = $10% p.a.$, t = $2$ years

For the first year, t = $1$ year

S.I. = (P × r × t)/$100$

= $(13,500\times 10\times 1)/100$

= ₹ $1,350$

A = P + S.I.

= $13,500 + 1,350$

= ₹ $14,850$

New principal is ₹ $14,850$.

For the second year, t = $1$ year, p = ₹ $14,850$

S.I. = (P × r × t)/$100$

= = $(14,850\times 10\times 1)/100$

= ₹ $1,485$

A = P + S.I.

= $14,850 + 1,485$

= ₹ $16,335$

C.I. = Interest in first year + interest in second year

= ₹ $(1,350 + 1,485)$

= ₹ $2,835$