Question

Find the compound interest if $Principal=Rs.4000$, $Rate=6\%$, $Time=3years$ compounded annually.

Answer 1

$P=$Rs. $4000$

$R=6\%$

$T=3$ years

$A=P{(1+\frac{R}{100})}^T$

$=4000{(1+\frac{6}{100})}^3$

$=4000{\left(\frac{106}{100}\right)}^3$

$=4000\times \frac{106\times 106\times 106}{100\times 100\times 100}$

$=\frac{595508}{125}=4764.064$

Compound Interest$=A-P$

$=4764.064-4000$

$=$ Rs. $764.064$.