₹21,000 is lent at compound interest of 10% p.a. for three years. Find the amount.
- A₹27,000
- B₹27,951
- C₹6,951
- D₹28,951
Solution & Step-by-step Explanation
Given parameters:
Principal (P)=₹21,000
Rate of Interest (R)=10% p.a.
Time (n)=3 years
The formula for the total amount (A) under compound interest is:
A=P(1+
100
R
)
n
Substituting the values into the formula:
A=21,000(1+
100
10
)
3
A=21,000(
10
11
)
3
A=21,000×
1000
1331
A=21×1331
A=₹27,951
Principal (P)=₹21,000
Rate of Interest (R)=10% p.a.
Time (n)=3 years
The formula for the total amount (A) under compound interest is:
A=P(1+
100
R
)
n
Substituting the values into the formula:
A=21,000(1+
100
10
)
3
A=21,000(
10
11
)
3
A=21,000×
1000
1331
A=21×1331
A=₹27,951