Question

What will be the compound interest on a sum of rs. 25,000 after 3 years at the rate of 12 p.c.p.a.?

Answer 1

Hi !!!!!!!

Here is your answer,

Given :-Principal (P) = Rs. 25000
Rate of interest = 12% per annum
Time (n) = 3years

$Compound \: \: Intrest = P[ \: {(1 + \frac{R}{100} )}^{n} - 1 \: ] \\ \\ = 25000 \: [ \: {(1 + \frac{12}{100} )}^{3} - 1 \: ] \\ \\ ( 12 \: \: and \: 100 \: \: are \: \: divisible \: \: by \: \: 4) \\ (12 \div 4 = 3) \\ (100 \div 4 = 25) \\ \\ = 25000 \: [ \: \: {(1 + \frac{3}{25} )}^{3} - 1 \: ] \\ \\ = 25000 \: [ \: \: {( \frac{25 + 3}{25} )}^{3} - 1 \: ] \\ \\ = 25000 \: [ \: {( \frac{28}{25} )}^{3 } - 1 ] \\ \\ = 25000 \: [ \: \frac{21952}{15625} - 1 \: ] \\ \\ = 25000 \: [ \: \frac{21952 - 15625}{15625} \: ] \\ \\ = 25000 \: [ \: \frac{6327}{15625} \: ] \\ \\ = 25000 \times \frac{6327}{15625} \\ \\ = \frac{158175000}{15625} \\ \\ = 10123.2$


Compound Interest = Rs. 10123.2



Hope it helps !!!!!!!!!!