 Hello and welcome to the session. In this session we are going to discuss the following question and the question says that find the compound interest on $80,000 at 8% per annum for 1 1 4th years. The compound interest formula is amount A is equal to P into 1 plus R upon 100 raised to power n for n years. Now for n years and m months we have amount A will be equal to P into 1 plus R upon 100 raised to power n plus P into 1 plus R upon 100 raised to power n into n by 12 into R upon 100. So the amount for n years and m months will be equal to P into 1 plus R upon 100 raised to power n into 1 plus R into m by 12 upon 100. With this key idea let us proceed with the solution. According to the question we need to find the compound interest on $80,000 at 8% per annum for 1 1 4th years. So we are given the principle P is equal to $80,000. The rate of interest R is equal to 8% per annum and the time is equal to 1 1 4th years which is equal to 1 year and 3 months. So n is equal to 1 year and m is equal to 3 months which implies m by 12 is equal to 3 by 12 which is equal to 1 by 4. So as amount for n years and m months is equal to P into 1 plus R upon 100 raised to power n into 1 plus R into m by 12 upon 100. So here the amount is equal to 80,000 into 1 plus 8 upon 100 raised to power 1 into 1 plus 8 into 1 by 4 upon 100 dollars. So this is equal to 80,000 into 1 plus 8 upon 100 into 1 plus 2 upon 100. Taking the LCM within the brackets this will be equal to 80,000 into 100 plus 8 upon 100 into 100 plus 2 upon 100 dollars which is equal to 80,000 into 108 upon 100 into 102 upon 100 dollars. So on cancelling all the zeros this will be equal to 8 into 108 into 102 dollars which is equal to 88,128 dollars. As we know compound interest is equal to amount minus the original principle. So here the compound interest is equal to 88,128 minus 80,000 dollars which is equal to 8,128 dollars which is our answer. This completes our session. Hope you enjoyed this session.