Question

Find the compound interest on Rs 90,000 for 3 years at the rate of 10% per annum compounded annually.

Answer 1

P = Rs 90000
n = 3 [$\because$ Interest is compounded annually]
r = 10% p.a.
Since A = P ${(1+\frac{r}{100})}^n$

$\therefore A=Rs90000{(1+\frac{10}{100})}^3$$=Rs90000{(1+\frac{1}{10})}^3=Rs90000{\left(\frac{11}{10}\right)}^3$

$Rs90000\times \frac{11}{10}\times \frac{11}{10}\times \frac{11}{10}$
= Rs $90\times 11\times 11\times 11=Rs119790$
Now, C.I. = A - P = Rs 119790 - Rs 90000 = Rs 29,790