Question

Calculate the amount and compound interest on Rs 10800 for 3 years at 12 1/2% per annum compounded annually

Answer 1

We know that, A = P( 1 + r /100)n  (Where  A = Amount  and n = number of years)

A = 10800 (1 + 25/200)^3

A = 10800(1+1/8)^3

A = 10800(9/8)^3

A = 15377.34

Compound Interest = A - P

                                   = 15377.34 - 10800

                                   = 4577.34

Hope this helps!