Question

Calculate the amount and compound interest on Rs10,000 at 4%per annum for 3 years compounded annualy.​

Answer 1

Solution:-

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Here, we have to calculate the amount and compound interest, compounded anually for 3 years. First we will find the amount by applying the formula and then after we will find the Compound Interest.

ANSWER:-

• Amount is Rs 11,248.64.
• Compound Interest is 1,248.64.

GIVEN:-

• Principal = Rs 10000
• Rate = 4% per annum
• Time = 3 years

TO FIND:-

• Amount = ?
• Compound Interest = ?

FORMULA:-

$\to\sf{Amount=P\bigg(1+\dfrac{R}{100}\bigg)^{n}}$

$\to\sf{Compound\: Interest=Amount - Principal}$

SOLVING BY APPLYING THE FORMULA:-

• Amount = $\sf{P\bigg(1+\dfrac{R}{100}\bigg)^{n}}$

• Amount = $\sf{10000\bigg(1+\dfrac{4}{100}\bigg)^{3}}$

• Take LCM

• LCM = 100

• Amount = $\sf{10000\bigg(\dfrac{100 + 4}{100}\bigg)^{3}}$

• Amount = $\sf{10000\bigg(\dfrac{104}{100}\bigg)^{3}}$

• Amount = $\sf{10000 \bigg(\dfrac{1124864}{1000000} \bigg)}$

• Amount = $\sf{10000 \times \dfrac{1124864}{1000000}}$

• Amount = $\sf{1{\not{0000}}\times \dfrac{1124864}{100{\not{0000}}}}$

• Amount = $\sf{1\times \dfrac{1124864}{100}}$

• Amount = $\sf{\dfrac{1124864}{100}}$

• Amount = $\sf{\dfrac{\not{1124864}}{\not{100}}}$

• Amount = $\sf{\dfrac{\not{1124864}}{\not{100}}} = 11248.64$

• Amount = Rs 11,248.64

Hence, the amount is Rs 11,248.64.

• Compound Interest = Amount - Principal
• Compound Interest = 11,248.64 - 10,000
• Compound Interest = 11,248.64 - 10,000 = 1,248.64
• Compound Interest = Rs 1,248.64

Hence, the interest compounded anually for 3 years is Rs 1,248.64.

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