Question

find the compound interest at the rate of 8% on Rs. 5,000 for 3 years.

Answer 1

Compound interest=?
Rate=8%
P=Rupees 5000
Time=3years
For 1st year
T=1 year

Formula--

S.I =p*r*t/100
=5000*8*1/100
=40000/100
=400
Amount for 1st yr=P+S.I
=5000+400
=5400
For 2nd year
P=5400
R=8%
T=1year
S.I= p*r*t/100
=5400*8*1/100
=432
Amount for 2nd year=P+S.I
=5400+432
=5832
For 3rd year
P=5832
R=8%
T=1year
S.I=p*r*t/100
=5832*8*1/100
=466.56
Amount of the third year=P+S.I
=5832+466.56
=6928.56
Compound interest=Final amount - Original principal
=6928.56 - 5000
=1298.56<Answer>