Question

Find the compound interest and amount on rupees 10500 for 3 years at the interest rate of 8% per annum

Answer 1

Given:-

• Principal,P = 10500

• Time,n = 3 years

• Rate,r = 8 %

To find out:-

Find the compound interest and amount.

Formula used:-

• A = P ( 1 + r/100 ) ^n

• C.I = A - P

Solution:-

We know that,

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

= 10500 ( 1 + 8/100 )³

= 10500 ( 1 + 2/25 )³

= 10500 ( 25 + 2 / 25 )³

= 10500 ( 27/25 )³

= 10500 × 27/25 × 27/25 × 27/25

= 10500 × 19,683/15,625

= 13,226.97 ( approx )

Now,

C.I = Amount - Principal

= 13,226.97 - 10500

= 7,273.03 ( approx )

Hence,the compound interest and Amount are ₹7,273.03 and ₹13,226.97 respectively .