Question

Find the amount and compound interest on the sum of rupees 15625 at 4%per annum. For three years

Answer 1

Answer:

Present value = Rs.15625

Interest rate = 12% per annum

Time = 3 years

Amount (A) = P (1 + R/100)n [Where, P = Present value

R = Annual interest rate

n = Time in years]

∴ A = 15625 (1 + 12/100)3

⇒ A = 15625 (112/100)3

⇒ A = 15625 (28/25)3

⇒ A = 15625 × 21952/15625

⇒ A = 21952

∴ Amount = Rs.21952

∴ Compound interest = Rs.(21952 – 15625)

= Rs.6327