Find the compound interest on ₹ 20,000 for 3 years at 10% per annum compounded annually.
₹ 6,620
A=P×[1+r100]n, where P is the principal, r is the rate of interest and n is the time period.
C.I = A - P
Here, P = ₹ 20,000, r = 10 %, and n = 3 years
A=20,000×[1+10100]3
A=20,000×[11×11×1110×10×10]
A = ₹ 26,620
So, C.I = 26,620 - 20,000 = ₹ 6,620