Question

6. What is the compound interest on 5000 for 3 years at 8% per annum? Find without using the formula . ​

Answer 1

Explanation:

Given principal (p) = Rs 5000

rate(r) = 8% ,time (t) = 3yr

step1 Find the total amount :

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amount = p ( 1 + r/100 )^t

amount = 5000 ( 1 + 8/100 )^3

= 5000 ( 108/100 )^3

= 5000( 27/ 25 )^3

= 5000 × 27 / 25 × 27 / 25 × 27 / 25

= 8 × 27 × 27 × 27 / 25

= Rs 6298.56

step 2 Find compound interest :

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C.I = Amount - principal

= 6298.56 - 5000 = Rs 1298.56

therefore , compound interest = Rs 1298.56

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Your Answer : Rs 1298.56