Question

rajesh deposited a sum of rupees 8000 at compound interest in the bank at the rate of 18% per annum for 3 years. what interest will he get after the end of 3 years?

Answer 1

We know that amount A at the end of n years at the rate of R% per annum is given by = A = P(1+R/100)n

Given:

P = Rs 8,000

R = 18% p.a.

n = 3 years.

Now,

A = 8000(1+18/100)3

A = 8000(118/100)3

A = Rs. 13,144.25

And, CI = A – P = Rs 13,144.25 – Rs 8,000 = Rs 5,144.25