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Calculate the Amount and Compound Interest on Rs 20000 for 3 Years at 10% per Annum, Interest Being Payable Annually. - Mathematics

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Question

Calculate the amount and compound interest on Rs 20000 for 3 years at 10% per annum, interest being payable annually.

Sum
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Solution

Here P1 = Rs.20000 and r = 10%
So, Amount after 1 year
= `"P"(1 + "r"/100)`

= `20000(1 + 10/100)`

= `20000 xx (110)/(100)` = 22000
Thus, P2 = Rs.22000 and r = 10%
Amount after 2 year 
= `"P"(1 + "r"/100)`

= `22000(1 + 10/100)`

= `22000 xx (110)/(100)` = 24200
Thus, P3 = Rs.24200 and r = 10%
Amount after 3 year
= `"P"(1 + "r"/100)`

= `24200(1 + 10/100)`

= `24200 xx (110)/(100)` = 26620
Hence, Amount = Rs.26620
Also, C.I.
= A - P
= Rs.26620 - Rs.20000
= Rs.6620.

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Concept of Compound Interest - Use of Compound Interest in Computing Amount Over a Period of 2 Or 3-years
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Chapter 3: Compound Interest - Exercise 3.1

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Frank Mathematics [English] Class 9 ICSE
Chapter 3 Compound Interest
Exercise 3.1 | Q 3
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