Question

3. A man invests 650 for 3 years at 9% per
annum. Calculate the:
(i) interest for the first year;
(ii) amount at the end of the second year;
(iii) compound interest in 3 years.​

Answer 1

Answer:

GOOD EVENING

P=$650

T=3 YRS.

R=9%PER ANNUM

FOR FIRST YEAR

COMPOUNDED ANNUALLY

FOR FIRST YEAR

P1= $650

P×R×T/100

=$650×9×1

100

=$58.5

FOR SECOND YEAR

P2= (P1 + INTREST1)

P2= $(650 + 58.5)

P2= $708.5

P×R×T/100

= $708.5×9×1

100

=$63.765

FOR THIRD YEAR

P3= (P2 + INTREST 2)

P3= $(708.5 + 63.765)

P3= $772.265

P×R×T/100

= $772.265×9×1

100

= $69.50385

COMPOUND INTEREST = $(I1+I2+I3)

$(58.5 + 63.765 + 69.50385)

$191.76885

NOW,

ANS.(1)$58.5

ANS.(2)$772.265

ANS.(3)$191.76885

THANKS