Question

Calculate the amount and the compound interest on Rs. 10000 in 3 years at 8% per annum.

Answer 1

For 1st year
Principal(P) =Rs. 10000, Rate(R) =8%
Time(T) =1 year
$\therefore$ Interest = $\frac{10000\times 8\times 1}{100}=100\times 8=Rs.800$
For 2nd year
P= Rs. 10000 +Rs. 800=Rs. 10800
Rate(R) =8% Time(T)=1 year
$\therefore$ Interest= $\frac{10800\times 8\times 1}{100}=108\times 8=Rs.864$
For 3rd year
$\therefore$ P= Rs. 10800 +Rs. 864 =Rs. 11664, R=8%, T=1 year
$\therefore$ Interest= $\frac{11664\times 8\times 1}{100}=\frac{11664\times 2}{25}$
=Rs. 933.12
$\therefore$ Amount =Rs. 11664 +933.12 =Rs. 12597.12
Hence required amount =Rs. 12597.12
$\therefore$ Compound interest =Rs. 12597.12 -10000=Rs. 2597.12