Find compound interest when it is compoun.
ded annually
-
Principal = 8000; R = 5%P.a;
3 years
Answers
Answer:
Principal for the first year = Rs.8000, Rate = 5% per annum, T = 1 year
Interest for the first year = =
100
P×R×T
=Rs.[
100
8000×5×1
]=Rs.400
∴ Amount at the end of the first year = Rs. (8000 + 400) = Rs. 8400
Now principal for the second year = Rs.8400
Interest for the second year =
100
P×R×T
=Rs.[
100
8400×5×1
]=Rs.420
∴ Amount at the end of the second year = Rs. (8400 + 420) =Rs.8820
Interest for the third year =
100
P×R×T
=Rs.
100
8820×5×1
=Rs.441
∴ Amount at the end of the third year = Rs.(8820 + 441) = Rs. 9261
Now we know that total C.I. = Amount - Principal = Rs. (9261 - 8000) = Rs. 1261
we can also find the C.I. as follows
Total C.I. = Interest for the first year + Interest for the second year + Interest for third year = Rs. (400 + 420 + 441) = Rs.1261
Answer:
Step-by-step explanation:
Here, P = $ 8000, R = 5 % per annum and n = 3 years.
Using the formula A = $ P(1 + R/ 100)ⁿ
amount after 3 years = $ {8000 × (1 + 5/100)³}
= $ (8000 × 21/20 × 21/20 × 21/20)
= $ 9261.
Thus, amount after 3 years = $ 9261.
And, compound interest = $ (9261 - 8000)
Therefore, compound interest = $ 1261.