Q2. Find the compound interest if Rs 4000 are invested for 3 years at the rate of 12p.c.p.a.
Answers
Answered by
1
Answer:
1695.31
Step-by-step explanation:
Principal ( P ) = Rs 4000
Rate of interest ( r ) = 12½ % = 25/2 %
Duration ( n ) = 3
Amount ( A ) = P( 1 + r/100 )ⁿ
A = 4000 ( 1 + 25/200 )³
A = 4000 ( 1 + 1/8 )³
A = 4000 × ( 9/8 )³
A = Rs 5695.31
Therefore ,
Compound Interest = A - P
= Rs 5695.31 - Rs 4000
= Rs 1695.31
Similar questions