rehana borrowed a sum of Rs. $10, 400$ to open bookshop at the rate of $4.5 %$ per annum for $3$ year find the compound interest paid by her after $3$ year

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Solution

The compound interest accumulation formula :

$P (1 + i)^{n} = A c c u m u l a t i o n$
Where,
$P = p r i n c i p l e a m o u n t$
$n = T i m e i n y e a r s$
$i = i n t e r e s t r a t e$

Given,
$P = 10400$
$n = 3 y e a r s$
$i = 4.5 %$

$A c c u m u l a t e d a m o u n t = 10400 \times (1.045)^{3} = 10400 \times 1.141166 = 11868.13$

$C o m p o u n d i n t e r e s t = 11868.13 - 10400 = 1468.13$

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