 Hello and welcome to the session. Today I'll help you with the following question. The question says calculate the amount and compound interest on rupees 10,800 for 3 years at 12.5% per annum compounded annually. Now let's consider the formula A is equal to P multiplied by 1 plus r upon 100 whole to the power n, where A is the amount, is the principal, r is the rate, n is the number of years and also compound interest is equal to amount A minus principal P. Now this is the key idea for this question. Now let's move on to the solution. Now in the question it's given that principal P is equal to rupees 10,800, rate r is equal to 12.5% and that is equal to 25 upon 2% time that is n is equal to three years. Now from the key idea we have this formula amount A is equal to principal P multiplied by 1 plus r upon 100 whole to the power n. Now let's substitute the values for P, r and n in this formula. So we have A is equal to rupees 10,800 multiplied by 1 plus 25 upon 2 multiplied by 1 upon 100 this whole to the power 3. Now we already know that 25 4 times is 100 so this becomes equal to rupees 10,800 multiplied by 1 plus 1 upon 8 whole to the power 3 and now this is equal to rupees 10,800 multiplied by 9 upon 8 whole to the power 3. Now this further is equal to rupees 10,800 multiplied by now 9 cube is 729 upon 8 cube is 512 and now 64 8 times is 512 and 1350 8 times is 10,800 further 32 2 times is 64 and 675 2 times is 1350 and so this is further equal to rupees 675 multiplied by 729 upon 32 and now this is equal to rupees 492075 upon 32 which is further equal to rupees 15377.34. So we have amount is equal to rupees 15377.34. Now we shall calculate the compound interest CI and this is equal to amount A minus principal P that is rupees 15377.34 minus rupees 10,800 and this is equal to rupees 4577.34 that is the compound interest CI is equal to rupees 4577.34. So this is a final answer amount is equal to rupees 15377.34 and compound interest is equal to rupees 4577.34. So hope you enjoyed the session have a good day.