Question

Vishal invested ₹ 30,000 for 3 years @ 10% p.a. compounded annually. Find the total amount and interest received by Vishal.

Hint:

Remember: For compound interest, add interest back each year — the amount grows faster than simple interest.

Answer 1

This is a compound interest calculation problem with annual interest addition.
Given:
Principal (P) = ₹ 30,000
Annual Interest Rate (R) = 10%
Time Period (n) = 3 years
Compound Interest Formula:
$A = P \times \left(1 + \frac{R}{100}\right)^{n}$
Substituting the values:
$A = 30,000 \times \left(1 + \frac{10}{100}\right)^{3}$
$A = 30,000 \times (1.10)^{3}$
$A = 30,000 \times 1.331$
$A = ₹ 39,930$
Total Amount (A) = ₹ 39,930
Compound Interest (CI) = Total Amount - Principal
CI = ₹ 39,930 $-$ ₹ 30,000
CI = ₹ 9,930
Therefore, the total amount after 3 years will be ₹ 39,930, with an interest received of ₹ 9,930.