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Hint-Make use of the formula and calculate the amount first and from that calculate the compound interest.

Complete step-by-step answer:

Given, Principal =Rs.10,800

Time period=n=3 years

Rate of interest=R=12.5%

To, calculate compound interest let's make use of the formula of amount and calculate it

Amount=A=$P{\left( {1 + \frac{R}{{100}}} \right)^n}$

Let’s substitute these values in the formula

So, we get Amount=A=$

10,800{\left( {1 + \frac{{12.5}}{{100}}} \right)^3} \\

= 10,800{\left( {\frac{{112.5}}{{100}}} \right)^3} \\

= 10,800 \times \frac{{112.5}}{{100}} \times \frac{{112.5}}{{100}} \times \frac{{112.5}}{{100}} \\ $

So, from this we get Amount =Rs.15377.34

But, we have to calculate the compound interest of this,

So, we can write

Compound Interest=Amount-Principal

=15377.34-10,800

=Rs.4577.34

So, Compound Interest=Rs.4577.34

Note: After finding out the amount , do not stop the solution there, also make sure to find out the compound interest after the amount has been found out

Complete step-by-step answer:

Given, Principal =Rs.10,800

Time period=n=3 years

Rate of interest=R=12.5%

To, calculate compound interest let's make use of the formula of amount and calculate it

Amount=A=$P{\left( {1 + \frac{R}{{100}}} \right)^n}$

Let’s substitute these values in the formula

So, we get Amount=A=$

10,800{\left( {1 + \frac{{12.5}}{{100}}} \right)^3} \\

= 10,800{\left( {\frac{{112.5}}{{100}}} \right)^3} \\

= 10,800 \times \frac{{112.5}}{{100}} \times \frac{{112.5}}{{100}} \times \frac{{112.5}}{{100}} \\ $

So, from this we get Amount =Rs.15377.34

But, we have to calculate the compound interest of this,

So, we can write

Compound Interest=Amount-Principal

=15377.34-10,800

=Rs.4577.34

So, Compound Interest=Rs.4577.34

Note: After finding out the amount , do not stop the solution there, also make sure to find out the compound interest after the amount has been found out