Question

(1) A sum of rupees 30000 is listed for 3 years at 7 ½ % p.a. compound interest . what is the sum at the end of the second year . what is the sum of at the end of the third year . what is the total interest earned in 3rd year .

Answer 1

Answer:

a) The sum at the end of 2nd year-

P(1+r/100)^n

30000×(1+7½/100)²

= 30000×(215/200)²

= 34668.75 Rs.

b) sum at the end of 3rd year-

30000×(215/200)³

= 37268.90 Rs.

c) Total interest earned in 3rd year-

37268.90-30000 = 7268.90 Rs.