Question

Find the amount and compound interest on ₹ 36000 in 3 years at 10% compounded annually.

Answer 1

Given:

• Principal (P) = ₹ 36000
• Rate of interest (r) = 10% per annum
• Time (n) = 3 years
• Compound interest compounded annually

Step-wise calculation:

1. Calculate the amount (A) using the compound interest formula:

`A = P(1 + r/100)^n`

2. Substitute the values:

`A = 36000(1 + 10/100)^3`

`A = 36000 xx (110/100)^3`

3. Calculate:

`A = 36000 xx 110/100 xx 110/100 xx 110/100`

A = 36000 × 1.1 × 1.1 × 1.1

A = 36000 × 1.331

A = 478,000 × 1.331

A = 47,916

4. Compound Interest (C.I.) is:

C.I. = A – P

C.I. = 47916 – 36000

C.I. = 11916