Question

calculate the compound interest that Siddhartha will get by investing rupees 1000 for 3 years at the rate of 10 %per annum

Answer 1

look at attachment .....

Answer 2

$\underline{\bold{Solution:-}}$

Principal = 1000 rupees

Time = 3 years

Rate = 10%

Here the interest is compounded annually.

So,

$Amount = Principal {(1 + \frac{ Rate }{100}) }^{3} \\ \\ = 1000 \times {(1 + \frac{10}{100} )}^{3} \\ \\ = 1000 \times {( \frac{10 + 1}{10} )}^{3} \\ \\ = 1000 \times {1.1}^{3} \\ \\ = 1000 \times 1.331 \\ \\ = 1331 \: rupees$

So, it will amount to 1331 rupees.

Compound interest = Amount - Principal

= 1331 - 1000

= 331 rupees

So, the compound interest will be of 331 rupees.