Question

Fine the interest and the amount repaid. Round to the nearest cent when necessary Principal rate. Time 525.00 12% 14 months What is the interest and the amount?

Answer 1

Answer:

The Amount  = 599..23 unit And Compound Interest = 74.23 unit

Step-by-step explanation:

Given The Principal = 525 unit

The rate of interest = 12%

The time period = 14 months = (1 + ($\frac{1}{6}$ ) years = $\frac{7}{6}$ = 1.167  years

Now from compound interest method

Amount = principal $(1 +\frac{Rate}{100})^{Time}$

Amount = 525 $(1 +\frac{12}{100})^{1.167}$

Amount = 525 ( 1.141 )

Amount = 599.23 unit

So, Compound Interest = Amount - principal

Or, CI = 599.23 - 525

Or, CI = 74.23 unit

Hence the Amount  = 599..23 unit And Compound Interest = 74.23 unit

Answer