Question

5. Calculate the compound interest for the second
year on 8,000/- invested for 3 years at 10%
per annum.​

Answer 1

Answer:

Compound interest for the second year will be the simple interest gained in the second year, with the amount after first year being the principal for the second year.

For the first year :

P=Rs8,000

N=1year

R=10 %

We have S.I.= PNR/100=8000*1*10/100=Rs.800

And Amount at the end of first year P+S.I.=Rs8,000+Rs800=Rs8,800

Now, for the second year

P=Rs8,800

N=1year

R=10 %

We have S.I.= PNR/100=8800*1*10/100=Rs.880

Thus, Compound interest for the second year =Rs880

Step-by-step explanation:

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