Find the compound interest on 80000 for 3years at 5%per annum

Step-by-step explanation:

Principal for the first year = Rs.8000, Rate = 5% per annum, T = 1 year

Interest for the first year = =

100

P×R×T

=Rs.[

100

8000×5×1

]=Rs.400

∴ Amount at the end of the first year = Rs. (8000 + 400) = Rs. 8400

Now principal for the second year = Rs.8400

Interest for the second year =

100

P×R×T

=Rs.[

100

8400×5×1

]=Rs.420

∴ Amount at the end of the second year = Rs. (8400 + 420) =Rs.8820

Interest for the third year =

100

P×R×T

=Rs.

100

8820×5×1

=Rs.441

∴ Amount at the end of the third year = Rs.(8820 + 441) = Rs. 9261

Now we know that total C.I. = Amount - Principal = Rs. (9261 - 8000) = Rs. 1261

we can also find the C.I. as follows

Total C.I. = Interest for the first year + Interest for the second year + Interest for third year = Rs. (400 + 420 + 441) = Rs.1261