Question

find to the nearest rupees the compound interest on rupees 1800 for 3 year at 5% rate of interest compound annually​

Answer 1

Answer:

2084

Step-by-step explanation:

We start with 1800 rupees:

Compounding for 3 years annually at a 5% rate means that we must multiply by a multiplier of 1.05, and do that for 3 years in a row.

Hence the formula is as follows:

Starting Amount * (Rate of interest as a decimal^Number of years) = Final Amount

1800 * (1.05) = 1890 (End of year one)

1890 *(1.05) = 1984.5 (End of year two)

1984.5 * (1.05) = 2083.725 (End of year three)

We can simplify this down and simply do 1800*(1.05^3) using the formula which gives us the final answer of 2083.725. Rounding this up we get 2084.