Question

Find the compound interest for the following,using the first principles ₹ 8000 at 5 % p.a. for 3 years

Answer 1

P - ₹8000
R - 5 p.c.p.a
N - 3 years

$a = p (1 + \frac{r}{100} ) {}^{2}$

$a = 8000 (1 + \frac{5}{100}) {}^{2}$
$a = 8000( \frac{105}{100} ) {}^{2}$
$8000 \times \frac{105}{100} \times \frac{105}{100}$

a = 8 × 105 × 10.5
a = ₹8820

CI = A - P
8820 - 8000
CI = 820

Ans = CI = ₹820