Question

Calculate the Compound Interest on Rs.20,000 at 8% per annum for 3 years compounded annually.

Answer 1

Given principle = Rs 20,000 and rate of interest = 8% and time = 3 years
Amount = p(1+r/100)^n
              = 20000 (1+8/100)³
⇒ 20000(27/25)³ =  20000*19683/15625 = 25194.24 Rs
Amonut = 25194.24 Rs
C.I = amonut - priciple
C.I = 25194.24 - 20000 = Rs 5194.24

Answer 2

$20000(1 + \frac{8}{100} ) {}^{3} \\ 20000(1 + 0.08) {}^{3} \\ 20000(1.08) ^{3} \\ 20000 \times 1.25 \\ = 25000$