Question

Find compound interest on 5,000 for three years
at 5% p.a. compounded yearly.
​

Answer 1

Step-by-step explanation:

$\frac{5}{100} \times 5000 = 250$

250×36 ( year are transfer into month 3 year mean 36 month)

250×36=9000rs

Answer 2

Question :-

Find compound interest on 5,000 for three years

at 5% p.a. compounded yearly.

Solution :-

Principal = Rs 5000

Time = 3 years

Rate = 5% p.a

$\star$ Formula to be used :

$A \: = P(1 + \frac{r}{n} ) {}^{t}$

A = Amount

P = Principal

r = Interest rate

n = number of times interest applied per time period

t = Time

Solution :-

$5000 \times { (\frac{105}{100}) }^{3}$

$= 50 \cancel{ 00} \times \frac{105}{ \cancel{100}} \times \frac{105}{100} \times \frac{105}{100}$

$= 5788.125$

Amount = Rs 5788.125

Therefore, Compound interest = Rs 5788.125 - 5000

= Rs 788.125

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Hope it helps you :-)