Find the amount and compound intereston Rs 8,000 for 3 years at 5% per annum
Answers
P=₹8,000
T=3 years
R=5% p.a.
A=P(1+r/100)^t
=8000(1+0.05)³
=8000×1.157625
=₹9261
CI=A-P=₹9261-₹8000=₹1261
Therefore, amount will be ₹9261 and the compound interest will be ₹1261.
Answer:
Principal for the first year = Rs.8000, Rate = 5% per annum, T = 1 year
Interest for the first year = =
100
P×R×T
=Rs.[
100
8000×5×1
]=Rs.400
∴ Amount at the end of the first year = Rs. (8000 + 400) = Rs. 8400
Now principal for the second year = Rs.8400
Interest for the second year =
100
P×R×T
=Rs.[100
8400×5×1
]=Rs.420
∴ Amount at the end of the second year = Rs. (8400 + 420) =Rs.8820
Interest for the third year =
100
P×R×T
=Rs.
100
8820×5×1
=Rs.441
∴ Amount at the end of the third year = Rs.(8820 + 441) = Rs. 9261
Now we know that total C.I. = Amount - Principal = Rs. (9261 - 8000) = Rs. 1261
we can also find the C.I. as follows
Total C.I. = Interest for the first year + Interest for the second year + Interest for third year = Rs. (400 + 420 + 441) = Rs.1261