Question

if the compound interest is charged on principal 5000 for a duration of 3 years at 8p.c.p.a find the amount​

Answer 1

Reply:

6,298.56

Walkthrough:

5000 yields 8% per year

The capital will be invested for 3 years, therefore:

1st year: 5000 +400 = 5400

2nd year: 5400 + 432 = 5832

3rd year: 5832 + 466.56 = 6,298.56