Question
What will be the CI on a sum of Rs.80,000 after 3 years
at the rate of 10%p.a? ÂSolution
CI = P[1+ R/100]t - P CI = 80000[1+ 10/100]3 - 80000 CI = 80000 [ 110/100]3 - 80000 CI = 80000 × (110/100) × (110/100) × (110/100) - 80000 = 106480 - 80000  = 26480
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