Question

Calculate the compound interest on Rs 20000 at 8% p.a. for 3 years compounded annually.​

Answer 1

Answer:

Here P=20,000 Rs., n=3 years, R=8

Amount(A)=P(1+100R)n

                     =20000(1+1008)3

                     =20000(2527)3

                     =25×25×2520000×(27)3

                     =2532×(27)3

                     =25,194.24 Rs.

Compound interest(C.I)=A−P=25,194.24−20,000=5,194.24

Hence, the compound interest is Rs. 5,194