armaan20088
Answered

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Find the amount and compound interest on ₹ 5000 at 6% per annum, for 3 years, compounded annually.​

Sagot :

Given:

Principal = ₹ 5000

Compound rate of interest = 6% per annum

Time = 3 years

To find:

The amount after 3 years of compound interest.

Solution:

Formula for amount is:

[tex]A=P\left(1+\dfrac{r}{100}\right)^t[/tex]

Where, P is principal, r is rate of interest in % and t is the number of years.

Putting P=5000, r=6 and t=3, we get

[tex]A=5000\left(1+\dfrac{6}{100}\right)^3[/tex]

[tex]A=5000\left(1+0.06\right)^3[/tex]

[tex]A=5000\left(1.06\right)^3[/tex]

On further simplification, we get

[tex]A=5000(1.018108216)[/tex]

[tex]A=5000(1.191016)[/tex]

[tex]A=5955.08[/tex]

Therefore, the amount after 3 years of compound interest is 5955.08.

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