Tutorial Examples of Compound Interest


Examples of Compound Interest


   

Example 11:
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

(compound amount)
Compound interest

Example 12:
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
r = 6%

Example 13:
Find compound interest on Rs.2500 invested at 6% per annually, compound semi-annually for 8 years.

Solution:
Let Principal = 2500
r =6%

We know that



Compound interest


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