Question

Ridhima deposited ₹46000 in a bank that give compound interest at 8.5% per annum. How much money will Ridhima get back after 3 years. Also find the compound interest.

Answer 1

Thanks for asking the question!

ANSWER::

Compound interest formula ( for calculating amount after 3 years)

A = P (1 + r/n)^(nt)

A = Amount

P = Principal ( amount invested)

r = annual interest rate = 8.5 %

n = number of time interest is compounded in particular year = 1

t = Number of years money is invested or borrowed = 3

A = 46000(1 + 8.5%/1)^(1x3)

A = 46000 [( 1000 + 85) / 1000]³

A = 46000 x (1277289125 / 1000000000)

A = (46 x 1277289125 ) / 1000000

A = 58755299750 / 1000000

A = 58755.29975 Rs. ( amount which Ridhima will get back after 3 years)

Total Compounded interest = P (1 + r/n)^(nt) - P

= 58755.29975 - 46000

= 12755.29975 Rs.

Hope it helps!

Answer 2

Principal (P) = 46000 rupees

Rate of Compound Interest (r) = 8.5% per annum

Time = 3 years

$Amount \: = P {(1 + \frac{r}{100} )}^{n} \\ \\ = 46000 \times {(1 + \frac{8.5}{100} )}^{3} \\ \\ = 46000 \times {( \frac{108.5}{100}) }^{3} \\ \\ = 4.6 \times 108.5 \times 108.5 \times 108.5 \\ \\ = 58755.29\: rupees \\ \\ Compound \: Interest \: \\ \\ = Amount - Principal \\ \\ = 58755.29- 46000 \\ \\ = 12755.29 \: rupees$