Question

Raviraj invested an amount of rs 10000 at compound interest rate of 10% p.a for a period of three years how much amount will raviraj get after three years

Answer 1

Compound interest is interest calculated upon interest earned in previous periods.

In this case, Raviraj had Rupees 10,000 which he invested at 10% compound interest for 3 years.

Interest for first year will be 10,000 x 10/100 = 1,000

Interest for second year will be 11,000 x 10/100 = 1,100

Interest for third year will be 12,100 x 10/100 = 1,210

Hence at the end of the third year, Raviraj will get Rupees 13,310.

Formula for compound interest is P(1+r/100)^n.