Question

Find the compound interest and amount on $Rs.1,500$ at the rate of interest $5$% per annum for $3$ years using formula method.

Answer 1

Principle $\left(P\right)=Rs.1,500,Rate\left(R\right)=5$%, $Time\left(n\right)=3years$.
Formula: $A=P{(1+\frac{R}{100})}^n$
$A=1,500{(1+\frac{5}{100})}^3$
$A=1,500{\left(\frac{105}{100}\right)}^3$
$A=1,500\times \frac{105}{100}\times \frac{105}{100}\times \frac{105}{100}$
$A=\frac{3\times 21\times 21\times 21}{16}$
$A=\frac{27,783}{16}$
$A=1,736.40$
Compound Interest $=$ Amount $-$ Principle
$=1,736.40-1,500=236.40$
$Amount=Rs.1,736.40$,

Compound interest $=Rs.236.40$