Question

Calculate the compound interest on 31,600 for 3 years at 5% per annum compounded annually.
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Answer 1

Answer:

Principal = (P) = ₹16, 000

Time = (t) = 3 years

Rate = (r) = 5%

Amount = Principal × (1 + (r/2 × 100)) n × 2

= ₹ 16,000 × (1+ (5/200)) 3 × 2

= ₹16,000 × (205/200)6

= ₹ 16,000 × 41/40 × 41/40 × 41/40 × 41/40 × 41/40 × 41/40

= ₹ 18,555

C.I. = Amount – Principal

= ₹ 18,555 - ₹ 16,000

₹ 2555

Answer 2

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Solution:-

Given

Principal (P) = 31,600

Rate (R) = 5% p.a.

T = 3 years

Amount $= P\times ( 1 + \sf\dfrac{r}{2\times 100})^{n\times 2}$

$= 31,600\times ( 1 + \sf\dfrac{5}{2\times 100})^{3\times 2}$

$= 31,600\times (\sf\dfrac{205}{200})^{6}$

$= 31,600\times (\sf\dfrac{41}{40})^{6}$

= 36,646.31 (Taken till 2 decimal places.)

∴ C.I. = 36,646.31 - 31,600

= 5,046.31

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Know More Formulas:-

• A = P + I

• R = $\dfrac{I\times 100}{P\times T}$

• P = $\dfrac{I\times 100}{R\times T}$

• T = $\dfrac{I\times 100}{P\times R}$

• C.I. = $P(1+\dfrac{R}{100})^{n}$