What is the compound interest earned on Rs. 20,000 after 3 years at an annual interest rate of 10%?

Explanation

The compound amount is calculated as A = 20000 × (1 + 10/100)^3 = 20000 × (1.1)^3 = 20000 × 1.331 = Rs. 26,620. The compound interest is the amount minus the principal: 26,620 - 20,000 = Rs. 6,620.