Question

find the amount and compound interest on 12000 in 3years at 5% interest being compounded annually​

Answer 1

Answer:

Rs. 1891.50

Step-by-step explanation:

Principle(P): Rs. 12,000

Time period(n): 3 years

Rate of interest(R): 5%

Compound interest =  [P (1 + R/100)]ⁿ - P

Compound interest =  [12000 (1 + 5/100)³] - 12000

Compound interest =  [12000 x 105/100 x 105/100 x 105/100] - 12000

Compound interest =  [12 x 105 x 105 x 105 / 1000] - 12000

Compound interest =  [13891500 / 1000] - 12000

Compound interest = 13891.50 - 12000

Compound interest = Rs. 1891.50