Question

let us calculate the amount on RS 5000at the rate of 8%compound interest per

annum for 3years?​

Answer 1

Solution:-

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$\large\to{\underbrace{\underline{\sf{Understanding\:the\:concept:-}}}}$

$\implies$ Here it is given in the question that we have to calculate the amount on Rs. 5000 at the rate of 8% compounded interest per annum for 3 years. Here we have to find out the amount and compound interest. So, to calculate the Amount and Compound Interest follow the steps shown below.

ANSWER:-

• The amount is Rs. 6298.56.
• The compound interest is Rs. 1298.56.

GIVEN:-

• Principal amount = Rs. 5000
• Rate of interest = 8%
• Time = 3 years

TO FIND:-

• Here we have to find out Amount and the Compound Interest.

SOLVING STEP BY STEP:-

• To find the compound interest first we need to find the amount.
• To find the amount we have to apply a certain formula.

We know that:-

$\underline{ \boxed{\sf \bigstar Amount = P\Bigg[1 + \bigg(\dfrac{R}{100} \bigg)^{n} \Bigg]}}$

Where,

• P = Principal
• R = Rate
• N = Time

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• Finding the amount:-

$\sf {Amount = 5000\Bigg[1 + \bigg(\dfrac{8}{100} \bigg)^{3} \Bigg]}$

$\sf {Amount = 5000\bigg(\dfrac{100 + 8}{100} \bigg)^{3}}$

$\sf {Amount = 5000\bigg(\dfrac{108}{100} \bigg)^{3}}$

$\sf {Amount = 5000 \times \dfrac{1259712}{1000000} }$

$\sf {Cancelling \: the \: zeros. }$

$\sf{Amount = 5 \times \dfrac{1259712}{1000}}$

$\sf{Multiplying \: the \: terms}$

$\sf{Amount = \dfrac{6298560}{1000}}$

$\sf{Dividing \: 1000 \: by\:6298560.}$

$\sf{Amount = \dfrac{6298560}{1000}} = 6298.56$

$\overline{ \boxed{\sf Amount = 6298.56}}$

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• Now, we will find the compound interest as we got the amount.

We know that:-

$\underline{ \boxed{\sf \bigstar Compound \: Interest = A - P}}$

Where,

• A = Amount
• P = Principal

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• Finding the Compound Interest:-

$\sf {Compound \: Interest = 6298.56 - 5000}$

$\sf {Compound \: Interest = 6298.56 - 5000 = 1298.56}$

$\overline{ \boxed{\sf Compound \: Interest = 1298.56}}$

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