Question

Ramesh deposit rs 1250 in his bank account find compound interest after 3 year if rate is 5%and interest payed annually? ​

Answer 1

Given:-

• $\sf{P = Rs.1250}$
• $\sf{T= 3 \:years}$
• $\sf{R = 5\%}$

To find:-

• Compound Interest

Solution:-

$\sf{A = P\bigg(1 + \dfrac{r}{100}\bigg)^t}$

= $\sf{A = 1250\bigg(1 + \dfrac{5}{100}\bigg)^3}$

= $\sf{A = 1250\bigg(1 + \dfrac{1}{20}\bigg)^3}$

= $\sf{A = 1250\bigg(\dfrac{20+1}{20}\bigg)^3}$

= $\sf{A = 1250\bigg(\dfrac{21}{20}\bigg)^3}$

= $\sf{A = 1250 \times \dfrac{21}{20} \times \dfrac{21}{20} \times \dfrac{21}{20}}$

= $\sf{A = Rs.14470.31}$

= $\sf{CI = A - P}$

= $\sf{CI = Rs.(14470.31 - 1250)}$

= $\sf{CI = Rs. 13220.31}$

From the solution:-

• T = Times
• R = Rate
• A = Amount
• P = Principal