Question

Rajeev deposited rs 20,000 in a bank where compound interest is 6% annually how much amount he will get at the end of third year​

Answer 1

Solution!!

The concept of compound interest has to be used here. The principal, rate of interest and time is given in the question. We have to find the amount.

Principal (P) = Rs 20000

Time (n) = 3 years

Rate of interest (R) = 6%

Amount = P(1 + (R/100))ⁿ

Amount = 20000(1 + (6/100))³

Amount = 20000(106/100)³

Amount = 20000(53/50)³

Amount = 20000 × (53/50) × (53/50) × (53/50)

Amount = Rs 23820.32

Hence, the amount is Rs 23820.32

The questioner may further ask you to find the compound interest. So, here's how you can find it.

Compound interest = Amount - Principal