Anil borrowed a sum of Rs. 9600 to install a handpump in his dairy. If the rate of interest is 5 % per annum compounded annually, determine the compound interest which Anil will have to pay after 3 years.

Question

Philoid · Accepted Answer

Given,

Principal = Rs. 9600

Rate of interest = 5% =

Time = 3 years

Hence,

Compound interest =

= 9600× 0.174 = Rs.1672.72

So,

Compound interest paid by Anil after 3 years = Rs.1672.72

Anil borrowed a sum of Rs. 9600 to install a handpump in his dairy. If the rate of interest is 5% per annum compounded annually, determine the compound interest which Anil will have to pay after 3 years.