Find the compound interst on a sum of rupees 8000 for 3 years at the rate of 5 percent p.a
Answers
Step-by-step explanation:
Principal for the first year = Rs.8000 Rate = 5% per annum T = 1 year
Interest for the first year =
100
P×R×T
=Rs.[
100
8000×5×1
]=Rs.400
∴ Amount at the end of the first year =Rs.(8000+400)=Rs.8400
Now principal for the second year = Rs. 8400
Interest for the second year =
100
P×R×T
=Rs.[
100
8400×5×1
]=Rs.420
∴ Amount at the end of the second year = Rs. (8400 + 420) = Rs.8820
Interest for the third year =
100
P×R×T
=Rs.[ *8820×5×1 ]=Rs.441
∴ Amount at the end of the third year =Rs.(8820+441)=Rs.9261
Now we know that total C.I. = Amount - Principal =Rs.(9261−8000)=Rs.1261
We can also find the C.I. as follows
Total C.I. = Interest for the first year + Interest for the second year + Interest for third year =Rs.(400+420+441)=Rs.1261