Question

John purchase washing machine at rs 12000 on credit and the shopkeeper charges interest the rate of 20% per annum.calculate the compound interest he will have to pay after 3 years

Answer 1

Answer:

Step-by-step explanation: Principal(P)=12000

Rate of interest(R)= 20% per annum

time(T)= 3 years

compound interest= P{(1 + R/100)^T - 1 }

                                 = 12000{( 1 + 20/100)^3 -1 }

                                 = 12000{(1 + 1/5)^3 - 1 }

                                 = 12000{(6/5)^3 -1 }

                                 = 12000{ 216/125 -1 }

                                 = 12000{(216-125)/125}

                                 = (12000/125)*91

                                 = 96*91

                                 = 8736