Find Compound interest on Rs. 12000 at 5 % p.a. for 3 years compounded annually.(a) Rs.1891.50(b) Rs2891.50(c) Rs.3891.50(d) Rs.4891.50 Show
Answer Verified
Hint: We will use the formula to find compound interest here. The formula is given by $\text{C}\text{.I}\text{.=Amount - Principal}$ where amount can be found out by the formula $A=P{{\left( 1+\dfrac{R}{100} \right)}^{T}}$. Here P is called the principal, R is the rate, and T is called the time for the compound interest. With these formulas, we will solve the question directly.Complete step-by-step solution - Note: Alternatively we can solve the question by using the simple interest method. But we will not get the same answer always instead we will get an approximate result. The method is done below. What will be the compound interest earned on an amount of Rs 12000 for 2 years at the rate of 10% pa compounded annually?Hence, the compound interest is Rs. 2,520.
What is the compound interest accrued on an amount of 12000 at the rate of 9% per annum at the end of 2 years?Detailed Solution
∴ Compound Interest is Rs. 1230.
How much will RS 12000 amounts to in 2 years at compound interest?⇒13356−12000=1356Rs.
What will be the compound interest earned on an amount of Rs 12500 in 2 years at 6% pa?12500×115100×116100=Rs. 16675.
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