Saved Bookmarks
| 1. |
Find the compound interest on Rupees 6250 at 16% for 3 years compounded annually |
|
Answer» Principal amount = Rs. 6250 Rate = 16% Time = 3 years To find, The COMPOUND interest if the given money is compounded ANNUALLY. Solution, We can easily solve this mathematical problem by using the following mathematical formula. A = P (1+R/100)^n Here, A = Final amount = Compound Interest + Principal amount R = Rate n = number of years (This formula is applicable, when the principal amount is compounded annually.) A = 6250 ( 1+ 16/100)³ A = 6250 (116/100)³ A = 6250 (29/25)³ A = 6250 × (24389/15625) A = 24389/2.5 A = 9755.6 Compound Interest = Final amount - Principal amount = 9755.6-6250 = Rs. 3505.6 Hence, the compound interest is Rs. 3505.6 |
|