find the compound interest on Rupees 6250 at 16% for 3 years compounded annually
Answers
Given,
Principal amount = Rs. 6250
Rate = 16%
Time = 3 years
To find,
The compound interest if the given money is compounded annually.
Solution,
We can easily solve this mathematical problem by using the following mathematical formula.
A = P (1+R/100)^n
Here,
A = Final amount = Compound Interest + Principal amount
R = Rate
n = number of years
(This formula is applicable, when the principal amount is compounded annually.)
A = 6250 ( 1+ 16/100)³
A = 6250 (116/100)³
A = 6250 (29/25)³
A = 6250 × (24389/15625)
A = 24389/2.5
A = 9755.6
Compound Interest = Final amount - Principal amount = 9755.6-6250 = Rs. 3505.6
Hence, the compound interest is Rs. 3505.6
Answer:
₹3505.60
explanation
For 1st year
P = ₹6250
R = 16 %
T=3year
SI = P×R×T/100
= 6250×16×1/100
= ₹1000
A = P + I
= ₹6250 + ₹1000
= ₹7250
For 2nd year
P = ₹7250
R = 16%
T = 3year
SI = PRT/100
= ₹7250×16×1/100
= ₹1160
A = P + I
= ₹7250 + ₹1160
= ₹8410
For 3rd year
P = ₹8410
R = 16%
T = 3year
SI = PRT/100
= ₹8410×16×1/100
= ₹1345.6
A = P+I
= ₹8410 + ₹1345.6
= ₹9755.6
Amount at end of 3rd year = ₹9755.6 - ₹6250
= ₹3505.6 Ans.