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  • Find the compound interest earned on Rs. 25000 for 3 years at 8%

Find the compound interest earned on Rs. 25000 for 3 years at 8% per annum, with the interest compounded annually.

Answers (1)

best_answer

Using the formula,

$$
\text { Amount }=\text { Principal } \times\left(1+\frac{\text { Rate }}{100}\right)^{\text {Time }}
$$
Given: 

  • Principal = Rs. 25000
  • Rate = 8%
  • Time = 3 years

Putting values in the formula, 

$$
\begin{aligned}
\text { Amount } & =25000 \times\left(1+\frac{8}{100}\right)^3 \\
& =25000 \times(1.08)^3 \approx \text { Rs. } 31493
\end{aligned}
$$

So the compound interest = Amount calculated- Principle 

Putting these values in the equation, 

$$
\begin{aligned}
\text { Compound interest } & =\text { Rs. } 31493 \text {-Rs. } 25000 \\
& =\text { Rs. } 6493
\end{aligned}
$$

 

Posted by

Saniya Khatri

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