Question

Compute the amount and the compound interest by using the formulae when : Principal = Rs 3000, Rate = 18%, Time = 2 years.

Answer 1

Given, P = Rs 3000, rate = 18%, time = 2years

A = P (1 + R/100)n

= 3000 (1 + 18/100)2

= 3000 (118/100)2

= Rs 4177.2

Compound interest (CI) = A-P = Rs 4177.2 – 3000 = Rs 1177.2