Question
What is the compound interest on a sum of ₹25,000
after three years at a rate of 12 per cent per annum interest compounded yearly?Solution
ATQ, we can say that Principal = Rs. 25000 Rate of interest = 12% p.a. Time period = 3 years C.I. = P × ((1 + r/100)t - 1) C.I. = Rs. 25000 × ((1 + 12/100)3 - 1) C.I. = Rs. 10123.20
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