Question

Surbhi borrowed a sum of Rs. $12000$ from a finance company to purchase a refrigerator. If the rate of interest is $5\%$ p.a. compounded annually. Calculate the CI that Surbhi has to pay to the company after $3$ yrs.

Answer 1

Principle = Rs 12000

Rate = 5% P.a.

Time = 3 years

$\begin{array}{c}\Rightarrow C.I=P{\left(1+\frac{R}{100}\right)}^T\\ \Rightarrow C.I=12000{\left(1+\frac{5}{100}\right)}^3\\ \Rightarrow C.I=12000{\left(\frac{21}{20}\right)}^3\\ =12000\times \frac{21}{20}\times \frac{21}{20}\times \frac{21}{20}\\ C.I=\frac{3}{2}\times {\left(21\right)}^3=Rs.13891.5\end{array}$