Question

Calculate the compound interest on Rs.15,000, for 3 years at 5% per annum
the interest being compounded annually.​

Answer 1

Answer:

Simple Interest I=

100

PNR

Here for first year,

P=Rs.15,000

N=1 year

R=6 %

So, Interest at the end of 1st year I=

100

15,000×1×6

=Rs.900

And for second year,

P=Rs.15,000+Rs.900=Rs.15,900

N=1 year

R=8%

I=

100

15,900×1×8

=Rs.1272

And, for third year,

P=Rs.15,900+Rs.1,272=Rs.17,172

N=1 year

R=10%

I=

100

17,172×1×10

=Rs.1,717.2

So, total interest =Rs.900+Rs.1,272+Rs.1,717.2=Rs.3,889.20