Question

Calculate the interest on Rs.20000 for 3 year at 5% per annum, when the interest is compounded annually
Pls help

Answer 1

Answer:23152.5

Step-by-step explanation:p=20000

R=5%

N=3

A=p [1+ r/100] to the power n

20000[ 1 +5/ 100] ³

20000 x 1.05 x 1.05 x 1.05

23152.5

Answer 2

Answer:

The compounded interest =  3152.5 Rs.

Step-by-step explanation:

Given data

          principal amount  (P) = Rs.20000

            rate of interest  (R) = 5%  (annually)

                   time period  (T) = 3 years  

here we need to find interest when compounded annually

the formula for compound interest =  P[ 1 + $\frac{r}{100}$ ]^T  - P    

                                             = 20000 [ 1 + $\frac{5}{100}$]³  - 20000

                                             = 20000 [ 1 + $\frac{1}{20}$]³ - 20000

                                             = 20000 [ $\frac{21}{20}$]³ - 20000

                                             = 20000 [ $\frac{21}{20}$ × $\frac{21}{20}$ ×$\frac{21}{20}$]  - 20000

                                             = 20/ 8 [21× 21× 21] - 20000

                                             =  2.5 [9261] - 20000

                                             = 23152.5 -20000 = 3152.5

The compounded interest =  3152.5 Rs.