What is the compound interest on ₹13,000 for 3 years at 10% per year, compounded annually?

💡 Solution & Explanation

Each year adds 10% of the amount at the start of that year. Year 1: ₹13,000 → ₹14,300. Year 2: ₹14,300 → ₹15,730. Year 3: ₹15,730 → ₹17,303. Compound interest = ₹17,303 − ₹13,000 = ₹4,303, which is 33.1% of the principal. Simple interest for 3 years would be only 30%, ₹3,900.