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 problem where interest is added to the principal annually.
Given:
Principal (P) = ₹ 30,000
Rate of interest (R) = 10% p.a.
Time (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 = ₹ 39,930
Interest Received = Amount - Principal
Interest = ₹ 39,930 $-$ ₹ 30,000
Interest = ₹ 9,930
Therefore, Vishal will receive ₹ 9,930 as interest and the total amount after 3 years will be ₹ 39,930.