Rohan borrowed a sum of $R s . 20, 000$ to open a book shop at the rate of $4.5 %$ per annum for $3$ years. Find the compound interest paid by him after $3$ years.

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Solution

Interest for the $1^{s t}$ year $= R s \frac{20000 \times 4.5 \times 1}{100} = R s 900$
Amount after the $1^{s t}$ year $= R s 20000 + R s 900 = R s 20900$
Interest for the $2^{n d}$ year $= R s \frac{20900 \times 4.5 \times 1}{100} = R s 940.50$
Amount after the $2^{n d}$ year $= R s 20900 + R s 940.50 = R s 21840.50$
Interest for the $3^{r d}$ year $= R s \frac{21840.50 \times 4.5 \times 1}{100} = R s 982.8225$
Amount after the $3^{r d}$ year $= R s 21840.50 + R s 982.8225 = R s 22823.3225$
$∴$ Compound Interest $= 22823.3225 - R s 20000 = R s 2823.3225$

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Rohan borrowed a sum of Rs.20,000 to open a book shop at the rate of 4.5% per annum for 3 years. Find the compound interest paid by him after 3 years.

Rohan borrowed a sum of $R s . 20, 000$ to open a book shop at the rate of $4.5 %$ per annum for $3$ years. Find the compound interest paid by him after $3$ years.