Question

Sumitra borrowed a sum of 25,000 to open a boutique, at the rate of 7% per annum for 3 years. Find
the compound interest paid by her after 3 years without using formula of compound interest.​

Answer 1

Answer:

Step-by-step explanation:

since we will not use formula here so we will take the time period as 1 year individually.

principal = 25000, rate=7% , time = 1 years

interest= (principal*rate*time)/100

= (25000*7*1)/100

= 1750

amount = principal+ interest

= 25000+ 1750

= 26750

for the 2nd year , the amount for the 1st year is the principal

principal= 26750,rate=7%, time=1

interest= (26750*7*1)/100

= 1872.50

amount= 26750+ 1872.50

= 28622.50

for the third year, the amount for the 2nd year is the principal

principal=28622.50,rate=7%,time= 1 years

interest = (28622.50*7*1)/100

=2003.575 which is approximately2003.65

hence compound interest is 2003.65 rupees.