Question

How much will be the compound interest 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

Formula
C.I=P{(1+i)n-1}. n=power of (1+i)-1
Principal=85000
n= 3, interest(i)=6%, 6|100=0.06
c.i=85000{(1+0.06)3 -1}
= 85000{(1.06*1.06*1.06)-1}
=85000(1.19-1)
=85000*0.19
= 16,150 ANS..