Question

Find the amount and the compound interest on Rs. 12,000 in 3 years at 5%; interest being compounded annually.

Answer 1

Given : P= Rs12,000; n=3years and r=5%

Amount= $P(1+\frac{R}{100}{)}^n$

= $12,000(1+\frac{5}{100}{)}^3$

=Rs. 13,891.50

C.I. =RS13,891.50 - Rs12,000

= Rs. 1,891.50