Find the compound interest on rupees 12500 for three years at 10% for

1.	Find the compound interest on rupees 12500 for three years at 10% for per annum compounded annually?
Answer» S O L U T I O N : <P> $\underline{\bf{Given\::}}$ Principal, (P) = Rs.12500 Rate, (R) = 10% p.a. Time, (n) = 3 years . $\underline{\bf{Explanation\::}}$ As we know that formula of the compounded annually; $\boxed{\bf{Amount=Principal\bigg(1+\frac{R}{100} \bigg)^{n}}}$ A/q $\mapsto\tt{Amount=12500\bigg(1+\cancel{\dfrac{10}{100}} \bigg)^{3}}$ $\mapsto\tt{Amount=12500\bigg(1+\dfrac{1}{10} \bigg)^{3}}$ $\mapsto\tt{Amount=12500\bigg(\dfrac{10+1}{10} \bigg)^{3}}$ $\mapsto\tt{Amount=12500\bigg(\dfrac{11}{10} \bigg)^{3}}$ $\mapsto\tt{Amount=125\cancel{00} \times \dfrac{11}{\cancel{10} }\times \dfrac{11}{\cancel{10}} \times \dfrac{11}{10} }$ $\mapsto\tt{Amount=\dfrac{125 \times 11 \times 11 \times 11}{10} }$ $\mapsto\tt{Amount=\cancel{\dfrac{166375}{10} }}$ $\mapsto\bf{Amount=Rs.16637.5}$ Now, as we know that compound INTEREST ; → C.I. = Amount - Principal → C.I. = Rs.16637.5 - Rs.12500 → C.I. = Rs.4137.5 Thus; The compound Interest will be Rs.4137.5 .