Question

Calculate the compound interest on rs1,600 for 3 years at 5% per annum when interest is compounded annually.​

Answer 1

Answer:

RS 80

Step-by-step explanation:

Principal = 1600

Time = 3 years

Rate of interest = 5%

No. of compounds per year = 1

Formula :

Substitute the values in the formula :

Amount = 1680

Compound interest = Amount - Principal

Compound Interest = 1680 - 1600

Compound interest = Rs.80

Hence The compound interest is Rs.80