Question

Rohit deposited $Rs.8000$ with a finance company for 3 years at an interest of $15\%$ per annum. What is the compound interest that Rohit gets after 3 years?

Answer 1

Principal $\left(P\right)=Rs.8000$

Rate $\left(R\right)=15\%$ per annum

Period $\left(T\right)=3$ years

Amount (A) after 3 years is given by

$A=P(1+\frac{15}{100}{)}^3$

$=8000(1+\frac{3}{20}{)}^3$

$=8000\times \frac{23}{20}\times \frac{23}{20}\times \frac{23}{20}$

$=23\times 23\times 23=Rs.12167$

$\therefore$ Compound interest for the 3 years $=A-P$

$=Rs.12167-8000=Rs.4167$