Question

If the amount on a certain principal in 3 years at 12% rate of interest compounded annually is rs 12,000, what will be the amount (in rs) after one year?

Answer 1

Step-by-step explanation:

Given, Amount(A) = ₹12,000

Time (n) = 3years

rate of interest(r%)= 12 % C. I.

we know, Amount = principle(1+r/100)^n

Or, 12000= P(1+12/100)^3

Or, 12000=P(1.12)^3

Or, 12000= P(1.405)

Or, P = 12000/1.405

Or, P = 8540.925≈8541

Now , Amount after year

= 8541(1+12/100)

= 8541(1.12) =₹9565.92

Answer 2

The amount at the end of 'n' years of investing in compound interest.

$A = P(1 + \frac{r}{100} {)}^{n}$

$here,$

$P = 12000$

$n = 3$

$r = 5\%$

$A = 12000(1 + \frac{5}{100} {)}^{3}$

$= rs.13891.5$

now, compound interest

$CI = amount - principle \\ = 13891.5 - 12000 \\ \boxed{= rs.1891.5}$