Question

A person invests an amount of rs. 4500 for three years at the rate of 20% per annum. what approximate amount of compound interest will he obtain at the end of three years

Answer 1

According to given sum,

principle=4,500
Time=3 years
Rate per annum=20%

$compound \: interest = p {(1 + \frac{r}{100} })^{n}$
$= 4500 {(1 + \frac{20}{100} })^{3}$
$= 4500 {( \frac{6}{5} })^{3}$
=7776

Amount=Principle+interest
=4,500+7,776
=12,276

:-)hope it helps u.