Given:
Present value= ₹ 31250
Interest rate= 8% 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 = 31250 (1 + 8/100)3
⇒ A = 31250 (1+2/25)3
⇒ A = 31250 (27/25)3
⇒ A = 31250 × 19683/15625 = 2 × 19683
⇒ A = ₹ 39366
∴ Compound interest = A – P
= 39366 – 31250= ₹ 8166
