Question

What is the compound interest on rs 31250 for 3 years if the rate percent 8%?

Answer 1

39366 RUPEES will be the compound interest. Apply in the direct formula of A= (1+r/100)^n

Answer 2

Acc to the question,

Principle = Rs 31250

Rate = 8%

Time = 3 years.

We know,

Compound Interest = P$(1+0.01r)^{n}$ - P

or, 31250(1+0.08)*(1+0.08)*(1+0.08) - 31250

or, 31250(1.259712) - 31250

or, 39366 - 31250

or, 8116.

∵ The Compound Interest on Rs 31250 for 3 years if the rate percent 8% is Rs 8116. [Ans]