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.
Any bug, improvement, feedback then
