Question

find the amount and the compound interest on rupees 16000 for 3 years at 5% per annum compounded annually

Answer 1

A=p(1+r/100)^n

A=16000(1+5/100)^3

A=16000×105×105×105÷100×100×100
A=18522rp
ci=18522-16000=2522

Answer 2

Given,

For a compound interest;

Principal = Rs 16,000

Rate of interest = 5% per annum

Time = 3 years

To find,

a) Total compound interest

b) Final amount

Solution,

We can simply solve this mathematical problem using the following process:

Mathematically,

If P is the principal amount invested at R% per annum, for n years, then;

Final amount = P [1 + R/100]^n

Now, according to the question;

The final amount of the compound interest

= P [1 + R/100]^n

= 16000 [1 + 5/100]^3

= 16000 x (21/20)^3

= 2 x (21)^3

= 2 x 9261

= Rs. 18,522

Now,

Total compound interest

= final amount - principal amount

= Rs. 18,522 - Rs. 16,000

= Rs. 2,522

Hence, total compound interest is equal to Rs. 2,522 and the final amount is equal to Rs. 18,522.