Question

Calculate the amount and compound interest on rs 10,000 in 3 years at 8% per annum

Answer 1

Hey,

Your answer,

Principal = 10000
Time = 3 yrs
Rate = 8% p.a.

C. I. = P×R×T/100
Or 10000×8×1/100
Or 100×8 = 800

Amount after 1st year = 10800

2nd year's P = A of 1st year

C. I. = 10800×8×1/100
Or 108×8 = 864

Amount after 2nd year = 11664 = P for 3rd year

11664×8×1/100 = 933.12

Amount = 12597.12

Hope it helps!

Answer 2

Another way to solve

principle = 10000

Time=3years

Rate=8%

Interest=10000×8×1/100
=100×8
=800
Principle=10000+800
=10800

Interest=10800×8×1/100
=108×8
=864
principle=10800+864
=11664

Interest=11664X8×1/100
=11664×2/25
=933.12
amount=1164+933.12
=12597.12
amount=12597.12

compound interest
=12597.12-10000
=2597.12