What will be the compound interest on a sum of rs.25000 after 3 years at a rate of 12%?
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Given Principal Amount = P = ₹25000
Time = n = 3 years
Rate of Interest Per Annum = i = 12%
We know that
Compound interest = P[(1+i)^n -1]
By substituting above information we get
Compound interest
=25000[(1+12%)^3)-1]
=25000[(1+ 12÷100)^3-1]
= 25000[(1.12)^3-1]
=25000[1.404928-1]
= ₹10,123.2 will be the interest
Time = n = 3 years
Rate of Interest Per Annum = i = 12%
We know that
Compound interest = P[(1+i)^n -1]
By substituting above information we get
Compound interest
=25000[(1+12%)^3)-1]
=25000[(1+ 12÷100)^3-1]
= 25000[(1.12)^3-1]
=25000[1.404928-1]
= ₹10,123.2 will be the interest
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