Calculate the Amount and the Compound Interest on Rs. 10,000 in 3 Years at 8% per Annum. - Mathematics

Sum

Calculate the amount and the compound interest on Rs. 10,000 in 3 years at 8% per annum.

Solution

For 1st year

Principal (P) = Rs.10,000, Rate (R) = 8%

Time (T) = 1 year

∴ Interest =(10,000xx8xx1)/100

= 100 × 8

= Rs.800

For 2nd year

P = Rs.10,000 + Rs.800 = Rs.10,800

Rate (R) = 8%, Time (T) = 1 year

∴ Interest =(10,800xx8xx1)/100

= 108 × 8

= Rs.864

For 3rd year

∴ P = Rs.10,800 + Rs.864 = Rs.11664,

R = 8%, T = 1 year

∴ Interest =(11664xx8xx1)/100=(11664xx2)/25

= Rs.933.12

∴ Amount = Rs.11664+ 933.12 = Rs.12597.12

Hence required amount = Rs.12597.12

∴ Compound interest = Rs.12597.12 − 10000

= Rs.2597.12

Concept: Concept of Compound Interest
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APPEARS IN

Selina Concise Mathematics Class 8 ICSE
Chapter 9 Interest
Exercise 9 (C) | Q 4 | Page 114