Question

What will be the compound interest on Rs. $25000$ for $3$ years at $6\%$ per annum, compounded annually?

Answer 1

Given, Principal $=$Rs. $25,000$

Time $=3$ years

Rate $=6\%$

Amount compounded annually $=25000{(1+\frac{6}{100})}^3$

$=25,000\times \frac{106}{100}\times \frac{106}{100}\times \frac{106}{100}$

$=29,775.4$

Compound interest$=$Rs. $29,775.4-$Rs. $25,000$

$=$Rs. $4775.4$.