Question

Rehana borrowed a sum of rs10400 to open a bookshop at the rate of 4.5 percent per annum for 3 years find the compound interest paid by her after 3 Years

Answer 1

Answer:

The compound interest accumulation formula :

P(1+i)

n

=Accumulation

Where,

P=principle amount

n=Time in years

i=interest rate

Given,

P=10400

n=3 years

i=4.5 %

Accumulated amount=10400×(1.045)

3

=10400×1.141166=11868.13

Compound interest=11868.13−10400=1468.13