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BACK 1.Find CI on Rs.6250 at 16% per annum for 2yrs ,compounded annually. Sol: Rate R=16,n=2,Principle=Rs.6250 Method1: Amount=P[1+(R/100)]n =6250[1+(16/100)]2 =Rs.8410 C.I=Amount-P =8410-6250 =Rs.2160 Method2: Iyear------------------6250+1000 \\Interest for 1st yr on 6250 II yr---------------6250+1000+160 \\Interest for I1yr on 1000 C.I.=1000+1000+160 =Rs.2160 2.Find C.I on Rs.16000 at 20% per annum for 9 months compounded quaterly Sol: MethodI: R=20% 12months------------------------20% => 3 months------------------------5% For 9 months,there are '3' 3months --------16000+800 --------16000+800+40 --------16000+800+40+10+2 =>Rs.2522 MethodII: Amount=P[1+(R/100)]n =16000[1+(5/100)]3 =Rs.18522 C.I=18522-16000 =Rs.2522 BACK |