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Question 15 Marks
Find the amount and the compound interest.
No Principal (Rs) Rate (p.c.p.a.) Duration (years)
i. 2000 5 2
ii. 5000 8 3
iii. 4000 7.5 2
Answer
i. Here $P=R s 2000, R=5$ p.c.p.a. and $N=2$ years
$
\begin{aligned}
A & =P\left[1+\frac{R}{100}\right]^N \\
& =2000\left[1+\frac{5}{100}\right]^2 \\
& =2000\left[\frac{100+5}{100}\right]^2 \\
& =2000\left[\frac{105}{100}\right]^2 \\
& =2000\left[\frac{21 \times 5}{20 \times 5}\right]^2 \\
& =2000\left[\frac{21}{20}\right]^2 \\
& =2000\left[\frac{441}{400}\right] \\
= & 5 \times 441 \\
\therefore & A=\text { Rs } 2205 \\
\text { I } & =\text { Amount (A) - Principal (P) } \\
= & 2205-2000 \\
= & \text { Rs } 205
\end{aligned}
$
$\therefore$ The amount is Rs 2205 and the compound interest is Rs 205 .

ii. Here, $P=$ Rs $5000, R=8$ p.c.p.a. and $N=3$ years
$
\begin{aligned}
A & =P\left[1+\frac{R}{100}\right]^{ N } \\
& =5000\left[1+\frac{8}{100}\right]^3 \\
& =5000\left[\frac{100+8}{100}\right]^3 \\
& =5000\left[\frac{108}{100}\right]^3=5000\left[\frac{27 \times 4}{25 \times 4}\right]^3 \\
& =5000\left[\frac{27}{25}\right]^3 \\
& =5000 \times \frac{27}{25} \times \frac{27}{25} \times \frac{27}{25} \\
& =\frac{8}{25} \times 27 \times 27 \times 27=0.32 \times 19683 \\
\therefore & A=\text { Rs } 6298.56 \\
I = & \text { Amount }(A)-\text { Principal }(P) \\
= & 6298.56-5000 \\
= & \text { Rs } 1298.56
\end{aligned}
$
$\therefore$ The amount is Rs 6298.56 and the compound interest is Rs 1298.56.

iii. Here, $P=R s 4000, R=7.5$ p.c.p.a. and $N=2$ years
$
\begin{aligned}
A & =P\left[1+\frac{R}{100}\right]^N \\
& =4000\left[1+\frac{7.5}{100}\right]^2 \\
& =4000\left[1+\frac{75}{1000}\right]^2 \\
& =4000\left[\frac{1000+75}{1000}\right]^2 \\
& =4000\left[\frac{1075}{1000}\right]^2=4000\left[\frac{43 \times 25}{40 \times 25}\right]^2 \\
& =4000\left[\frac{43}{40}\right]^2 \\
& =4000 \times \frac{43}{40} \times \frac{43}{40}=2.5 \times 43 \times 43 \\
\therefore A & =\text { Rs } 4622.50 \\
I & =\text { Amount (A) }- \text { Principal (P) } \\
= & 4622.50-4000 \\
= & \text { Rs } 622.50
\end{aligned}
$
$\therefore$ The amount is Rs 4622.50 and the compound interest is Rs 622.50

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