Question

Find the amount to be paid by the bank at the end of 3 years if you deposited ₹7500 at the rate of 5 % p.a.

Answer 1

Deposited amount (P)=Rs.7500

Rate of interest (R)=4%

Time period (t)=3 years

Therefore,

A=P(1+

100

R

)

t

A=7500(1+

100

4

)

3

⇒A=7500×(

25

26

)

3

⇒A=Rs.8436.48

Compound interest =A−P=8436.48−7500=Rs.936.48