Question
A person borrows ₹80,000 at a rate of 10% per annum
compound interest. What is the amount after 3 years?Solution
The formula for compound interest is: Amount = P(1 + R/100)^T, Where P is the principal, R is the rate of interest, and T is the time in years. Amount = 80,000(1 + 10/100)^3 = 80,000(1.1)^3. Amount = 80,000 × 1.331 = ₹106,480 The amount after 3 years is ₹106,480
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