Given:
Present value= ₹ 15625
Interest rate= 12% per annum
Time=3 years
To find the amount we have the formula,
Amount (A) = P (1+(R/100))n
Where P is present value, r is rate of interest, n is time in years.
Now substituting the values in above formula we get,
∴ A = 15625 (1 + 12/100)3
⇒ A = 15625 (112/100)3
⇒ A = 15625 (28/25)3
⇒ A = 15625 (21952/15625)
⇒ A = ₹ 21925
∴ Compound interest = A – P
= 21925 – 15625 = ₹ 6327