Question

find the compound interest on rs 5000 at 8%per annum for 3 years

Answer 1

principal=5000
rate=8%
time=3 years
Interest for 1st year=5000*8*1/100=rs 400
principal for 2nd year=rs 5400
amount=principal+interest
a=5000+400=rs 5400
rate=8%
time=1 year
interest for 2nd year=5400*8*1/100=rs 432
amount=5400+432=rs 5832
principal for 3rd year=rs 5832
interest for 3rd year=5832*8*1/100=rs 466.56
amount=5832+466.56=rs 6298.56
C I=amount at the end of third year-original principal
C I=6298.56-5000=rs 1298.56