Question

Find the amount and compound interest compounded annualy. principal 20,000 rate 6%, time 3 years

Answer 1

Answer:

A = 23820.32 ; C.I. = 3820.32

Step-by-step explanation:

We know that when a sum is invested at compound interest,

Amount = P [1+ (R/100)]^n and C.I. = A - P

Hence, in this case,

A = 20,000 [1 + (6/100)]^3

A = 20,000 [106 / 100]^3

A = 20,000 × [1191016 / 1000000]

A = 1191016 / 50

A = 23820.32

Therefore, C.I. = 23820.32 - 20000 = 3820.32