Question

Calculate the amount and CI on Rs.$3000$ at $5\%$ per annum for $2$ years.

Answer 1

$A=P{(1+\frac{r}{100})}^n$

$P=3,000$

$r=5\%$

$n=2$ years

$A=3,000{(1+\frac{5}{100})}^2$

$=3,000\times \frac{105}{100}\times \frac{105}{100}$

$=3,307.5Rs.$

$CI=A-P$

$=3,307.5-3,000$

$=307.5Rs.$