Question

4. Maria invests 93,750 at 9.6% per annum for 3 years and the interest is compounded annually.
Calculate:
(i) the amount standing to her credit at the end of the second year.
(ii) the interest for the third year.
(ii) the compound interest for the three years.​

Answer 1

Answer:

For 1st year

Interest = 93,750 * 9.6 / 100 = 9000

Amiunt = 93750 + 9000 = 102750

For 2nd year

Interest = 102750 * 9.6 / 100 = 9864

(i)Amount = 102750 + 9864 = 112614

For 3rd year

(ii) interest = 112614 * 9.6 / 100 = 10810.94

(iii) compound interest for the 3 years = 9000 + 9864 + 10810.94 = 29674.94