Question

5. A man invests 46,875 at 4% per annum compound
interest for 3 years. Calculate:
(i) the interest for the 1st year;
(ii) the amount standing to his credit at the end
of the 2nd year;
(iii) the interest for the 3rd year. (ICSE)
​

Answer 1

Given :- Aman invests ₹46875 at 4% per annum compound interest for 3 years.

Calculate :-

(i) the interest for the first year.

(ii) the amount standing to his credit at the end of the second year.

(iii) the interest for the third year.

Solution :-

Principal = ₹46875

Rate = 4% per annum compounded annually.

Time = 3 years.

we know that,

for first year CI and SI both are same.

SI = (P * R * T) / 100 .

so,

→ The interest for the first year = (46875 * 4 * 1)/100 = ₹1875 (Ans.i)

Now,

→ Amount after the first year = Principal for the second year = P + SI = 46875 + 1875 = ₹48750 .

So,

→ SI for second year = (48750 * 4 * 1)/100 = ₹1950 .

then,

→ Amount at the end of second year = Principal for the second year + SI for second year = 48750 + 1950 = ₹50700 (Ans.ii)

therefore,

→ Principal for third year = Amount at the end of second year = ₹50700

hence,

→ The interest for the third year = (50700 * 4 * 1)/100= ₹2028 (Ans.iii)

Learn more :-

CI in 2yr is Rs. 1600 and in 3 yrs it will be Rs. 1700. Find the rate of interest.

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