Question

A man invests Rs. $30,800$ at $5$% per annum compound interest for $3$ years. Calculate the interest for the first year.

Answer 1

For the first year
$P=Rs30,800$
$N=1year$
$R=5$ %
We have $S.I.=\frac{PNR}{100}=\frac{30,800\times 1\times 5}{100}=Rs1,540$