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Compute the Amount and the Compound Interest In the Following by Using the Formulae When: Principal = Rs 3000, Rate = 5%, Time = 2 Years

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Question

Compute the amount and the compound interest in  the following by using the formulae when:
Principal = Rs 3000, Rate = 5%, Time = 2 years

Sum
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Solution

\[\text{ Applying the rule A = P }\left( 1 + \frac{R}{100} \right)^n \text{ on the given situations, we get: }\]
\[A = 3, 000 \left( 1 + \frac{5}{100} \right)^2 \]
\[ = 3, 000 \left( 1 . 05 \right)^2 \]
 = Rs 3, 307 . 50
Now, 
CI = A - P
 = Rs 3, 307 . 50 - Rs 3, 000
 = Rs 307 . 50

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