Maths-
General
Easy

Question

Find the compound interest on Rs 5000 at 6% per annum for 3 years compounded annually

  1. Rs 955.08    
  2. Rs 900.08    
  3. Rs 855.08    
  4. none of these    

The correct answer is: Rs 955.08


    Interest rate = Final Amount - Principle Amount

    F i n a l space A m o u n t space equals P left parenthesis 1 plus I over 100 right parenthesis to the power of T space space space space space space space space space space space space space space space space space
space space space space space space space space space space space space space space space space space space space space space space space space space equals 5000 left parenthesis 1 plus 6 over 100 right parenthesis cubed space space space space space space space space space space space space space space space space
space space space space space space space space space space space space space space space space space space space space space space space space space space equals 5000 cross times left parenthesis 106 over 100 right parenthesis 3
space space space space space space space space space space space space space space space space space space space space space space space space space space equals 5955.08
I n t e r e s t space equals space 5955.08 minus 5000

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