Question

3. A man invests Rs 5000 for three years at a certain rate of interest, compounded annually. At the end of one year it amounts to Rs 5600. Calculate(i) the rate of interest per annum,(ii) the interest accrued in the second year,(iii) the amount at the end of the third year. 

Answer 1

total amount at end of first years=5000/(1+50/100=5000 151/100=7550
interest earned on first year=7550-5000=2550
income tax amount to be invested for second year =7550-510=7040

now total amount at end of second year =7040(1+50/100)=10630.4

Answer 2

Answer:

Step-by-step explanation:

P= 5000

R= ?

T=3years

Ai=5600

I= 5600-5000= 600

i) 600=(5000×r×1)/100

(600×100)\ 5000=r

12= r

ii) I 2 = 5600(amount of first year)× 12/100

=672

iii) I 3= 6272×12×1/100= 752.64

A 3= 6272.00+752.64=7024.64 And