Question

find the amount and compound interest on a sum of 15620 at 4% per annum for 3 years compounded annually

Answer 1

Find amount earned:

Amount = P( 1 + r/100)ⁿ

Amount = 15620(1 + 4/100)³

Amount = 15620((1 + 0.04)³

Amount = 15620(1.04)³

Amount = 15620(1.04)³

Amount = Rs 17570 (nearest whole number)

Find interest:

Interest = Amount - Principal

Interest = 17570 - 15620

Interest = Rs 1950

Answer: Interest = Rs 1950

Answer 2

principal=rs.15620 (p)

rate= 4% (r)

time= 3 years (t)

amount = p(1+r/100)^3

amount = 15620(1+4/100)^3

= 15620(1+0.04)^3

= 15620(1.04)^3

=15620(1.04×1.04×1.04)

=15620(1.13approx)

= 17650.6

amount= rs.17650.6

compound interest = amount - principal

= 17650.6- 15620

= 2030.6

hope it helps u..