5000 rupees is put in a bank at 6 percent a year, with the interest added every year.

Plan. Each year the amount is multiplied by $1.06$. After $3$ years: $5000 \times 1.06^3$.

1. amount = principal * (1 + rate) ** years. The brackets first, then the power, then the multiplication.
2. $1.06^3 = 1.191016$, so the amount is $5955.08$ rupees (rounded to 2 places).
3. Interest: $5955.08 - 5000 = 955.08$ rupees.

Check. Simple interest would be $5000 \times 0.06 \times 3 = 900$. Compound interest is a little more, because the interest also earns interest. ✓