Question
What is the compound interest in a sum of 7500 for 12/5
years at 20% p.a., interest compounded yearly (nearest to an integer)?Solution
given- P=7500, t 12/5y = 2.4 y, r=20% for 2y rate of interest 20% but after 2y rate of interest will be r= 20×.4=8% so now CI = 7500(1+20/100) ² (1+8/100)-7500 = (7500×36/25) × (108/100) -7500 =3×36×108 -7500 =11664-7500=4164rs
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