Further Problems using Logarithms Table

Example

Calculate the interest paid on a fixed deposit of #25000.00 which is inverted for a period of 3years at 12% interest per annum.

Solution

A = \( \scriptsize P \left (1 + \normalsize \frac {R}{100} \right )^ n \\ = \scriptsize 2500 \left (1 + \normalsize \frac {12}{100} \right )^n\)

= 25000(1.12)³

Interest = Amount – principal

35120 – 25000 = #10,120.00