can you give me short trick of compound interest

Question

owlfred · Answer

Hoot! You just asked your first question! Hang tight while I find people to answer it for you. You can thank people who give you good answers by clicking the 'Good Answer' button on the right!

anonymous · Answer

Hey Atish, what exactly do u need??

anonymous · Answer

amount 10000 and at the of 5% interest so what is compound interest of rate of 3year

anonymous · Answer

Easier thing to do is to first calculate the amount (A) after 3 years and then subtract the Principal (P) from it

anonymous · Answer

total amount after3 years = 10000(1 + .05) ^ 3

anonymous · Answer

interest = new amount - 10000

anonymous · Answer

for Comp. Int

A = P (1 + R/100)^n

So, here A = 10000 ( 1 + 5/100)^3

so, A = 10000 (1 + .05)^3
         = 10000 (1.05)^3  = 10000 x 1.157625 = 11576.25

anonymous · Answer

So Comp. Int. = A - P = 11576.25 - 10000 = 1576.25

Hope this is clear enough....