Question
What will be the compound interest earned on an
investment of Rs. 20,000 over a period of 3 years at an annual interest rate of 12%, compounded yearly?Solution
Compound interest received = 20000 X {1 + (12/100)} 3 Â - 20000
= 20000 X (112/100) 3 Â - 20000
= 28098.56 – 20000 = Rs. 8,098.56
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