Question

2. A sum of 9600 is invested for 3 years at 10% pia, compounded annually (1) What is the sum due at the end of 2 years? (ii) What is the sum due at the end of 3 years
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Answer 1

Answer:

Interest for the 1

st

year =Rs

100

9600×10×1

=Rs960

Amount after the 1

st

year =Rs9600+Rs960=Rs10560

(i) The sum due at the end of the 1

st

year =Rs10560

Interest for the 2

nd

year =Rs

100

10560×10×1

=Rs1056

Amount after the 2

nd

year =Rs10560+Rs1056=Rs11616

(ii) The sum due at the end of the 2

nd

year =Rs11616

(iii) Compound Interest earned in 2 years =Rs11616−Rs9600=Rs2016

(iv) Difference =Rs11616−Rs10560=Rs.1056

Interest =

100

1056×3×10

=Rs316.80