Question

Find the amount and the compound interest on Rs. 16000 for 3 years at 5% per annum compounded annually.

Answer 1

Principal(P)= Rs. 16000
Time(t) = 3 years
Rate(r)=5%
Amount= Principal $\times {(1+\frac{r}{100})}^t$
$=Rs.16000\times {(1+\frac{5}{100})}^3$
$=Rs.16000\times {\left(\frac{21}{20}\right)}^3$
$=Rs.16000\times \frac{21}{20}\times \frac{21}{20}\times \frac{21}{20}$
$=Rs.18522$
C.I= Amount-Principal
=Rs. 18522 - Rs. 16000 = Rs. 2522