Question

Compound interest on Rs2000 for 3 years at 5%per annum is

Answer 1

$a = p(1 + \frac{r}{100} ) {}^{t}$

$= 2000(1 + \frac{5}{100} ) {}^{3}$

$= 2000(1 + \frac{1}{20} ) {}^{3}$

$= 2000 \times (21 \div 20) \times (21 \div 20) \times (21 \div 20)$

=2315.25

now, CI=(A-P)

=2315.25-2000

=₹315.25