Question

1. Using the formula, calculate the amount and the CI in each of the
following:
(a) P = * 1200; R = 5% p.a.; n = 3 years​

Answer 1

CI = A-P-----(1)

A= P (1+r/100)^n

A = ₹[1200(1+1/20)³]

A = ₹[1200(21/20)³]

A = ₹[1200(441*21/400*20)]

A = ₹[1200(441*21/400*20)]

A = ₹ 1389.15

by (1) ,

CI= A-P = ₹[1389.15 - 1200] = ₹ 189.15