Question

find the compound interest on Rs.25000 at rate of 12% per annum for 3yrs

Answer 1

Compound interest = P [ (1 + r / 100)^t - 1]
= [25000(1 + 12/100)^3] - 25000
= 25000 (112 / 100)^3] - 25000
= 25000 (28 / 25)^2 - 25000
= [ (25000 x 28 x 28 x 28) / 25 x 25 x 25] - 25000
= [(8 x 28 x 28 x 28) / 5] - 25000
= 35123.2 - 25000
= 10123.2

Therefore, compound interest for 3 years at the rate of 12% on Rs 25000 is Rs 10123.2