Question 134

What would be the compound interest obtained on an amount of Rs. 3,000 at the rate of 8 p.c.p.a. after 2 years?

Solution

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

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

= $$3000 (1 + \frac{2}{25})^2$$

= $$3000 \times \frac{27}{25} \times \frac{27}{25}$$ = Rs. 3499.20

$$\therefore$$ C.I. = 3499.20 - 3000

= Rs. 499.20

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