28.1k views
15 votes
Find the interest and amount to be paid at the end of 3 years for a principal of Rs. 15000 at 5% per annum.

User Hajikelist
by
8.4k points

1 Answer

11 votes

per annum, namely compound interest with an APR of 5%.


~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$15000\\ r=rate\to 5\%\to (5)/(100)\dotfill &0.05\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{per annum, thus once} \end{array}\dotfill &1\\ t=years\dotfill &3 \end{cases}


A=15000\left(1+(0.05)/(1)\right)^(1\cdot 3)\implies A=15000(1.05)^3\implies A=17364.375 \\\\[-0.35em] ~\dotfill\\\\ \stackrel{\textit{the interest earned is simply}}{17364.375 - 15000}\implies 2364.375

User Isurusndr
by
7.5k points

Related questions

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories