Answer:
Compound interest = Rs 1,575 (Approx.)
Explanation:
Given:
Amount invested = R.s 6,500
Rate of interest = 7.5% per annum
Number of year = 3 year
Find:
Amount of compound interest
Computation:
Compound interest = P[(1+r)ⁿ - 1]
Compound interest = 6500[(1+7.5%)³ - 1]
Compound interest = 6500[(1+0.075)³ - 1]
Compound interest = 6500[(1.075)³ - 1]
Compound interest = 6500[1.2423 - 1]
Compound interest = 6500[0.2423]
Compound interest = 1574.95
Compound interest = Rs 1,575 (Approx.)