The compound interest on ₹ 8,000 at 15% per annum for

The compound interest on ₹ 8,000 at 15% per annum for 2 years 4 months, compounded annually is:

Given that , P = ₹ 8,000 , R = 15% , t = 2 years 4 months = [ 2 + ( 4 / 12 ) ] = 7 / 3 years
Using the given formula ,

Amount = P		1 +	R		^t
			100

Amount = 8000		1 +	15		^7/3
			100

Amount = 8000		1 +	3		²		1 +	3
			20					20 × 3

Amount = 8000 ×	23	×	23	×	21	= ₹ 11109
	20		20		20

∴ Compound Interest = Amount - Principal
∴ Compound Interest = ₹ (11109 – 8000) = ₹ 3109