1. Principal P = 1000, Rate R = 10, Time T = 2 years, find CI (Interest Compounded Annually)
Solution:
Principal P=1000
Rate of interest R=10%
Time T=2 year
Find CI, (Interest Compounded Annually)
We know that
A=P*(1+R/(100n))^(nT)
:.A=1000 xx (1+10/(100xx1))^(1xx2)
:.A=1000 xx (1+0.1)^(2)
:.A=1000 xx 1.21
:.A=1210
Now, CI=A-P
:.CI=1210-1000
:.CI=210
2. Principal P = 5000, Rate R = 10, Time T = 2 years, find CI (Interest Compounded Annually)
Solution:
Principal P=5000
Rate of interest R=10%
Time T=2 year
Find CI, (Interest Compounded Annually)
We know that
A=P*(1+R/(100n))^(nT)
:.A=5000 xx (1+10/(100xx1))^(1xx2)
:.A=5000 xx (1+0.1)^(2)
:.A=5000 xx 1.21
:.A=6050
Now, CI=A-P
:.CI=6050-5000
:.CI=1050
3. Principal P = 5000, Rate R = 20, Time T = 3 years, find CI (Interest Compounded Annually)
Solution:
Principal P=5000
Rate of interest R=20%
Time T=3 year
Find CI, (Interest Compounded Annually)
We know that
A=P*(1+R/(100n))^(nT)
:.A=5000 xx (1+20/(100xx1))^(1xx3)
:.A=5000 xx (1+0.2)^(3)
:.A=5000 xx 1.728
:.A=8640
Now, CI=A-P
:.CI=8640-5000
:.CI=3640
This material is intended as a summary. Use your textbook for detail explanation.
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