Question

10.
A man invests 30800 at 5% per annum compound interest for 3 years. Calculate:
the interest for the third year.​

Answer 1

Answer:

For the first year

P=Rs30,800

N=1year

R=5 %

We have S.I.=

100

PNR

=

100

30,800×1×5

=Rs1,540

And Amount at the end of first year P+S.I.=Rs30,800+Rs1,540=Rs32,340

Now, for the second year

P=Rs32,340

N=1year

R=5 %

We have S.I.=

100

PNR

=

100

32,340×1×5

=Rs1617

And Amount at the end of second year P+S.I.=Rs32,340+Rs1617=Rs33,957

Also, for the third year

P=Rs33,957

N=1year

R=5 %

We have S.I.=

100

PNR

=

100

33,957×1×5

=Rs1697.85