Question

Find the compound interest on 3000rs for 2 years when the interest is compounded annually at the rate of 20% per annum

Answer 1

Heya friend,


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Given that

P = ₹3,000

R = 20%p.a.

T = 3 years

Solution

C.I. = P{(1+R/100)^3 - 1}

= 3,000{(1+20/100)^3 - 1}

= 3,000{(100+20/100)^3 - 1}

= 3,000{(120/100)^3 - 1}

= 3,000{(6/5)^3 - 1}

= 3,000{216/125 - 1}

= 3,000{216 - 125/125}

= 3,000 × 91/125

= ₹2,184




Thanks

With regards@

Tanisha