__Example 01__**:**

Find the compound amount and compound interest on the principal 20,000 borrowed at 6% compounded annually for 3 years.

__Solution__**:**

Let P = 20000, r = 6%, n = 3

using formula

Compound interest

__Example 02__**:**

Find the compound amount, which would be obtained from an interest of Rs.2000 at 6% compounded quarterly for 5 years.

__Solution__**:**

Let Principal = 2000, ,

__Example 03__**:**

Find compound interest on Rs.2500 invested at 6% per annually, compound semi-annually for 8 years.

__Solution__**:**

Let Principal = 2500, ,

We know that

Compound interest