Answer:
Amount = Rs 13891.50
Compound interest = Rs 1891.50
Step-by-step explanation:
C = Amount (A) - Principal (P)
Where
C is the compound interest
To find the amount we use the formula
[tex]A = P ({1 + \frac{r}{100} })^{n} [/tex]
where
P is the principal
r is the rate
n is the period / time
From the question
P = Rs 12, 000
r = 5%
n = 3 years
Substitute the values into the above formula
That's
[tex]A = 12000 ({1 + \frac{5}{100} })^{3} \\ A = 12000(1 + 0.05)^{3} \\ A = 12000 ({1.05})^{3} [/tex]
We have the answer as
Amount = Rs 13891.50
Compound interest = 13891.50 - 12000
Compound interest = Rs 1891.50
Hope this helps you
