Question
What is the compounded amount on a sum of 25,000 after
three years at a rate of 12 percent per annum interest compounded yearly?Solution
Compound interest – 1st year-3000 2nd year-3000             360 3rd year-3000             360     360     43.2 Compound interest =9000+1080+43.2=10123.2Rs. Compounded Amount=25000+10123.2=35123.2 Rs.
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