Find CI paid when a sum of `Rs 10,000` is invested for 1 year and 3 months at `(8)1/2%` per annum compounded annually.

Explanation

Here, Principal amount, `P = "Rs."10000`

Rate, `r = 8.5%` per annum

Time, `t = 1` year and `3` months
So, Amount after first year `= 10,000xx(1+8.5/100)^1`

`=10,000xx108.5/100 = 10850`

So, interest after first year ` = 10850-10000 ="Rs." 850`

Now, interest for `3` months in `2^(nd)` year ` = (10,850xx8.5xx3)/(100xx12) = "Rs."230.56`


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