Question

4. Find the compound interest on Rs 10240 for 3 years, compounded annually at 12-% per annum.​

Answer 1

As per the data given in the question,

We have to determine the value of compound interest,

As per question,

It is given that,

P = Rs. 10240

Time = 3 Years

Rate = 12%

Type of interest - Compound Interest, compounded annually.

So, From the formula of Compound Interest,

We have,

$A = P(1+\frac{r}{100})^t\\A = Amount \\P = Principal\\r = Percentage\:rate\\t = time$

So, putting the value of quantities in above expression,

We will get it as,

$A=10240(1+\frac{12}{100})^3\\A = 10240\times (\frac{112}{100})^3\\A = 10240 \times \frac{112}{100}\times \frac{112}{100}\times \frac{112}{100}\\A = 14386.46 \approx Rs.\:14386.5$

As we know that,

Amount = Principal + CI

So, Compound Interest $=(14386.5-10240) = Rs.\:4146.5$

Hence, value of CI will be Rs. 4146.5