If a person borrow Rs 10,000 for 3 years at an interest rate of 10% compounded annually. Then what will be Compound Interest and the amount to be paid by him?

Given: A person borrow Rs 10,000 for 3 years at an interest rate of 10% compounded annually.

To do: What will be the CI and amount to be paid by him.

Solution:

For annual compounding, we have to use the formula Amount =$P(1+\frac{R}{100})^n$

Amount = $1000(1+\frac{10}{100})^3$

= Rs. 1331

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