Question

find the compound intrest on sum of 8000 at 5% per annum for three years compounded annualy

Answer 1

Time = 3 years.

Compound interest formula

S.I = C.I for 1st year..

S.I = PNR /100

= 8000*1*5 /100

=400

For 1st year S.I = C.I = Rs.400

Answer:

C.I = P ( 1 + R /100 )^n

= 8000 (1+ 5 /100)^3

= 8000 (105 /100) ^3

= 9261