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Surabhi Borrowed a Sum of Rs 12000 from a Finance Company to Purchase a Refrigerator. If the Rate of Interest is 5% per Annum Compounded Annually, - Mathematics

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Question

Surabhi borrowed a sum of Rs 12000 from a finance company to purchase a refrigerator. If the rate of interest is 5% per annum compounded annually, calculate the compound interest that Surabhi has to pay to the company after 3 years.

Numerical
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Solution

\[A = P \left( 1 + \frac{R}{100} \right)^n \]
\[ = 12, 000 \left( 1 + \frac{5}{100} \right)^3 \]
\[ = 12, 000 \left( 1 . 05 \right)^3 \]
\[ = 13, 891 . 50\]
Thus, the required amount is Rs 13, 891.50.
Now, 
CI = A - P
 = Rs 13, 891 . 50 - Rs 12, 000
 = Rs 1, 891 . 50

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Chapter 14: Compound Interest - Exercise 14.1 [Page 5]

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RD Sharma Mathematics [English] Class 8
Chapter 14 Compound Interest
Exercise 14.1 | Q 14 | Page 5

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