Question

Saleem invests $Euro20000$ at $4\%$ per annum compound interest for $3$ years. Work out the interest earned at the end of $3$ years.

Answer 1

Given $P=20000$ Euro

$R=4$% Pa

$n=3$

$A=P{[1+\frac{R}{100}]}^n$

$=20000{[1+\frac{4}{100}]}^3$

$=20000{\left[\frac{104}{100}\right]}^3$

$=22497.28$

$\Rightarrow I=22497.28-20000$

$=2497.28$ Euro