Question

rehana borrowed a sum of 10,400 rup to open a booksop ,at the rate of 4.5% per annum foryear. Find the compound interest paid by her after 3 years.?

Answer 1

P = 10,400 rupees
R = 4.5%
N = 3 yrs
Amount = A = 10,400 (1+45/1000)³         (∵ A = P (1+R/100)ⁿ)
∴ A = 10400 (1000+45/1000)³
∴ A = 10400 * 1045*1045*1045/1000000000
∴ A = 11868.127
CP = A - P
∴ CP = 11868.127 - 10400
∴ CP = 1468.127 rupees