Question

How much will be the C.I. to be paid on a principal amount of Rs 85,000 after 3 years at the rate of 6 p.c.p.a?

Answer 1

Because,   CI  = p(1+r/100)^n    Given   p= 85000 , n=3,  r = 6   Than,  CI =  85000(1+6/100)^3                =  85000 (1.06)^3                = 85000 ×1.191016                  =101,236.36