Question

$Rs.50,000$ were lent for $2\frac{1}{2}$ years at $8$% per annum compound interest. Find the compound interest at the end of $3$ years.

Answer 1

Given

$P=50,000$

$V=8$

$T=3$

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

$A=50,000(1+\frac{8}{100}{)}^3$

$A=50,000(\frac{108}{100}{)}^3$

$A=62,985Rs$

$CI=A-P$

$CI=62,985-50,000$

$CI=Rs12,985$