Question

Find the $CI$ on $Rs.7000$ at $10\%p.a$ compounded annually for $4$ years.

Answer 1

Given $P=7000$

$R=10\%$; $T=4$

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

$=7000{(1+\frac{10}{100})}^4$

$=7000{(1+\frac{1}{10})}^4$

$=7000{\left(\frac{11}{10}\right)}^4$

$=7000\times \frac{14641}{10000}$

$=7\times 14641/10$

$A=$Rs. $10,248.7$

C.I$=A-P$

$=10,248.7-7000$

$=$Rs. $3248.7$.