Question

find the compound interest on Rs 10725 at 12% pa for three years interest being payable yearly

Answer 1

A=10725 (1+ 12/100)³
A=10725 x26/25 x26/25 x26/25
A = 12064.166
CI = A-P
= 12064.166 -10725
= 1339.166

Answer 2

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Here is your answer
P = Rs 10725
R = 12% p.a
T = 3 years
As we know that
A = P (1+r/100)^t
$= 10725(1 + \frac{12}{100} ) {}^{3} \\ = 10725(1 + 0.12) {}^{3} \\ = 10725(1.12) {}^{3} \\ = 10725 \times 1.12 \times 1.12 \times 1.12 \\ = 15067.85$
So
CI = A - P
$= 15067.85 - 10725 \\ = 4342.85$
Therefore
Compound Interest is Rs 4342.85

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