Question

1. Find the amount and the compound interest
on 12,000 in 3 years at 5%: interest being
compounded annually.​

Answer 1

Rs 1,891.50

Given:

The principal amount (P)

= Rupees 12,000

Number of years (n)

= 3 Years

Rate at which it is compounded annually (r)

= 5 %

To Find:

The Amount of Compound Interest.

Calculating:

The formula we use to calculate the compound interest:

= P(1 + r/100)^n

Substituting all the values given into this formula we get:

= 12,000 (1 + 5 / 100)^3

= 12,000 (21/20)^3

= Rs 13,891.50

Therefore, 13,891.50 would be the whole amount along with the compound interest.

Calculating the Compound Interest:

= Rs 13,891.50 - Rs 12,000

= Rs 1,891.50

Therefore, the compound interest is Rs 1,891.50.

Answer 2

The amount at the end of 'n' years of investing in compound interest.

$A = P(1 + \frac{r}{100} {)}^{n}$

$here,$

$P = 12000$

$n = 3$

$r = 5\%$

$A = 12000(1 + \frac{5}{100} {)}^{3}$

$= rs.13891.5$

now, compound interest

$CI = amount - principle \\ = 13891.5 - 12000 \\ \boxed{= rs.1891.5}$