Question

Find the CI on 875000 compound annually if the rate of interest being 2%,4%,and 5% respectively for 3 successive years

Answer 1

compound interest at an interest rate of 2% is 5355n , 3% is 8113

at  5% is 13792.

Given: Principle (P) =875000

          Time_period (t) =3 YEARS

To find:

Compound interest  at i = 2% , 3% , 5%

Solution: CI =P(1+i)³-P

               CI =P[(1+i)³-1]

power is 3 because no. of years (t)  is 3 years.

CI = 87500 [(1.02)³-1]

    = 92855-87500

    =5355

CI = 87500 [(1.03)³-1]

    = 95613-87500

    =8113

CI = 87500 [(1.05)³-1]

    = 101292-87500

     =13792

compound interest at an interest rate of 2% is 5355

compound interest at an interest rate of 3% is 8113

compound interest at an interest rate of 5% is 13792.

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