Question

Using the ready reckoner, find the compound interest for Principal $Rs.22,000$ for $5$ years at $12\%$ p.a.

Answer 1

Given : $P=22,000$ Rs., $T=5,R=12\%$

Let $P=1$

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

$={(1+\frac{12}{100})}^5$

$=1.7623$

C.I. $=1.7623-1=0.7623$

Now, the interest on Rs. $1$ is $0.7623$ Rs.

Then, the compound interest on Rs. $22,000$ for $5$ years at the rate $12\%$ will be

$=22000\times 0.7623=16770.6$

Hence, the compound interest is Rs. $16,771$.