Question

Calculate the amount and compound interest by using the formula for compound interest
principal ₹1000, rate of interest 10%pa, years 3

Answer 1

Ans :-

Given,

Principal = 1000 rupees

Rate of interest = 10% per annum

Time = 3 years

FORMULA :-

Compound interest = Principal ( 1 + R ) ^ n - Principal

100

Now,

Substituting all the information in the given formula,

= Cl = P ( 1 + R )^ n - P

100

= 1000 ( 1 + 10 )^ 3- 1000

100

= 1000 × 110 × 110 × 110 - 1000 [Simplify]

100 100 100

= 11 × 11 × 11 - 1000

= 1331 - 1000

= 331 rupees

Now,

FORMULA :-

Amount = Compound Interest + Principal

Therefore,

Amount = 331 + 1000

= 1331 rupees

Therefore , compound interest is 331 rupees and amount is 1331 rupees.

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