Question

Find the compound interest when Principal is $Rs.3000$, rate is $5\%$ per annum and time is $2$ years.

Answer 1

Principal $P=Rs3,000$, Rate $R=5\%$ and Time $T=2$

We know that,

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

$=3000(1+\frac{5}{100}{)}^2$

$=3000(1+\frac{1}{20}{)}^2$

$=3000(\frac{21}{20}{)}^2$

$=3000\times \frac{21}{20}\times \frac{21}{20}$

$=3307.5$

Thus, $CI=A-P=3307.5-3000=Rs.307.5$