Question

Find the amount and the compound interest : If Principal = Rs. 4000, Rate = 5 p.c.p.a. and duration = 3 Years. *​

Answer 1

Please refer to the picture

Answer 2

Given :

• Principal = ₹4000

• Rate = 5 p.c.p.a.

• Time = 3 years

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To Find :

• Amount

• Compound Interest

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Solution :

We know that

$\mapsto \boxed{\bf \orange{Amount = Principal \times \bigg ( 1 + \dfrac{r}{100} \bigg)^{t}}}$

$\mapsto \sf Amount = 4000 \times \bigg ( 1 + \dfrac{5}{100} \bigg)^{3}$

$\mapsto \sf Amount = 4000 \times \bigg( \dfrac{105}{100} \bigg )^{3}$

$\mapsto \sf Amount = 4000 \times \dfrac{105}{100} \times \dfrac{105}{100} \times \dfrac{105}{100}$

$\mapsto \sf Amount = 4000 \times 1.05 \times 1.05 \times 1.05$

$\mapsto \sf Amount = 4630.5$

$\implies\boxed{\bf { Amount = Rs. \: 4630.5 }}$

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We know that

Compound Interest = Amount - Principal

Compound Interest = 4630.5 - 4000

Compound Interest = 630.5

$\implies\boxed{\bf { Compound \: Interest = Rs. \: 630.5} }$