Question

find the amount and compound interest on a sum of RS 15625 at. 4% per annum for 3 years compunded annually.​

Answer 1

Since the interest is being compounded annually, then

Amount = P(1 + r/100)^n

Given,

Principal (P) = Rs. 15625

Rate of interest (R) = 4%

Time (T) = 3years

To find,

✓ The compound Amount

✓ The compound interest

Solution,

Amount = P(1 + r/100)^n

= 15625(1 + 4/100)^3

= 15265(104/100)^3

= 15625 × 104/100 × 104/100 × 104/100

= Rs. 17,576

Amount = ₹17,576

Compound Interest (C.I) = A - P

= ₹17576 - ₹15625

= ₹1,951

Therefore,

Amount = ₹17576

Compound Interest = ₹1951

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