find the compound interest on rupees 1000 at rate of 10% per annum compounded anually for 3 years
To calculate the compound interest on rupees 1000 at a rate of 10% per annum compounded annually for 3 years, you can use the following formula:
A = P(1 + r/n)^(nt)
Where:
A = the future value (including the principal and interest)
P = the principal amount (1000 rupees)
r = the annual interest rate (10% or 0.10)
n = the number of times the interest is compounded per year (in this case, annually)
t = the number of years (3 years)
Now, let's plug in the values into the formula and calculate the compound interest:
A = 1000 (1 + 0.10/1)^(1*3)
A = 1000 (1 + 0.10)^3
A = 1000 (1.10)^3
A = 1000 * 1.331
A = 1331
The future value after 3 years would be 1331 rupees. To find the compound interest, subtract the principal amount from the future value:
Interest = A - P
Interest = 1331 - 1000
Interest = 331
Therefore, the compound interest on rupees 1000 at a rate of 10% per annum compounded annually for 3 years is 331 rupees.