Question

Find the compound interest on a sum of Rupees 8,000 at 5% per annum for three years Compounded annualy.
DON'T SPAM

Answer 1

S O L U T I O N :

Given,

• Principal (P) = Rs. 8000
• Rate of interest (R) = 5 %
• Time (t) = 3 years

To Find,

• Compound interest.

Explanation,

We know that,

C.I = [ P(1 + R/100)^t - P ]

[ Put the values ]

=> C.I = [ 8000 × (1 + 5/100)³ - 8000 ]

=> C.I = [ 8000 × (105/100)³ - 8000 ]

=> C.I = [ 8000 × 105/100 × 105/100 × 105/100 - 8000 ]

=> C.I = [ 8 × 105 × 10.5 × 1.05 - 8000 ]

=> C.I = [ 9261 - 8000 ]

=> C.I = Rs. 1261

Therefore,

The compound interest is Rs. 1261.

Answer 2

$\huge{\boxed{\rm{Question}}}$

Find the compound interest on a sum of Rupees 8,000 at 5% per annum for three years compounded annualy.

$\huge{\boxed{\rm{Answer}}}$

$\large{\boxed{\boxed{\sf{Given \: that}}}}$

• Principal = Rupees 8,000.

• Rate of interest = 5 percentage.

• Time = 3 year's.

$\large{\boxed{\boxed{\sf{To \: find}}}}$

• Compound interest.

$\large{\boxed{\boxed{\sf{Solution}}}}$

• Compound interest = 1261 Rupees

$\large{\boxed{\boxed{\sf{We \: also \: write \: these \: as}}}}$

• Principal as P.

• Time as T.

• Rate of interest as R.

$\large{\boxed{\boxed{\sf{What \: does \: the \: question \: says}}}}$

$\large{\boxed{\boxed{\sf{Let's \: understand \: the \: concept \: 1st}}}}$

• This question says that we have to find the compound interest. And here is given that a sum of Rupees 8,000 at 5% per annum for three years compounded annualy.

$\large{\boxed{\boxed{\sf{How \: to \: solve \: this \: problem}}}}$

$\large{\boxed{\boxed{\sf{Let's \: see \: the \: procedure \: now}}}}$

• To solve this question firstly we have to use the formula to find Compound interest and it's [ P (1 + R/100)ᵗ - P ] afterthat putting the values we get our final result very easily that is Rupees 1261. Hence, compound interest is 1261 Rupees

$\large{\boxed{\boxed{\sf{Full \: solution}}}}$

According to the question we already know that what to find and what is given so as we know that we have to find the compound interest since we have to use it's formula and we know what's the formula to find Compound interest it's given below ➝

• [ P (1 + R/100)ᵗ - P ]

Now we have to put the values according to this formula ➝

➪ C.I = [ P (1 + R/100)ᵗ - P ]

➪ C.I = [ 8000 × ( 1 + 5/100³) - 8000 ]

➪ C.I = [ 8000 × ( 105/500)³ - 8000 ]

➪ C.I = [ 8000 × 105/500 × 105/500 × 105/500 - 8000 ]

Cancelling the zeros and make them in decimal form we get ➝

➪ C.I = 8 × 105 × 10.5 × 1.05 - 8000 ]

➪ C.I = 9261 - 8000

➪ C.I = 1261 Rupees

$\bold{\green{\fbox{\green{Compound interest = 1261 Rs.}}}}$

Hence, Compound interest = 1261 Rupees.