Surabhi borrowed a sum of Rs. 12000 from a finance company to purchase a refrigerator. If the rate of interest is 5% per annum compounded annually, calculate the compound interest that Surabhi has to pay to the company after 3 years.

Question

Philoid · Accepted Answer

Given,

Principal = Rs.12000

Rate = 5%

Time = 3 years

Hence,

Compound interest =

=

So,

Compound interest paid by Surabhi to the company = Rs.1891.50