Question

At the end of three years what will be the compound interest at the rate of 10% p.a. on an amount of Rs.20000?

Answer 1

The right answer is 60422. 96

Answer 2

The compound interest on the amount of rs20000 is Rs 6620.

Step-by-step explanation:

Given:

Tenure; t= 3 years

Rate of interest; t = 10%

Amount; P= Rs. 20000

To find =compound interest

Solution:

The formula for compound interest is ;

CI= P$(1+ r/100)^{t}$-p

CI= 20000$(1+0.1)^{3}$-20000

CI=20000(1.331)-20000

CI=26620-20000

CI= Rs.6620

Result:

The compound interest on the amount of rs20000 is Rs 6620.

(#SPJ2)