Given:
Principal = ₹ 5000
Compound rate of interest = 6% per annum
Time = 3 years
To find:
The amount after 3 years of compound interest.
Solution:
Formula for amount is:
[tex]A=P\left(1+\dfrac{r}{100}\right)^t[/tex]
Where, P is principal, r is rate of interest in % and t is the number of years.
Putting P=5000, r=6 and t=3, we get
[tex]A=5000\left(1+\dfrac{6}{100}\right)^3[/tex]
[tex]A=5000\left(1+0.06\right)^3[/tex]
[tex]A=5000\left(1.06\right)^3[/tex]
On further simplification, we get
[tex]A=5000(1.018108216)[/tex]
[tex]A=5000(1.191016)[/tex]
[tex]A=5955.08[/tex]
Therefore, the amount after 3 years of compound interest is 5955.08.
