Question 132

What would be the compound interest obtained on a amount 3000 at the rate of 8% per annum after 2 years?

Solution

Amount = Rs. 3000

Time = 2 years and rate = 8% under compound interest

=> $$C.I. = P [(1 + \frac{R}{100})^T - 1]$$

= $$3000 [(1 + \frac{8}{100})^2 - 1]$$

= $$3000 [(\frac{27}{25})^2 - 1] = 3000 (\frac{729}{625} - 1)$$

= $$3000 \times \frac{104}{625} = 104 \times 4.8$$

= $$Rs. 499.20$$

Create a FREE account and get: