Question

$600 for 3 years at 10% per annum compounded annually

Answer 1

P = 600$
T = 3 Years
R = 10%

Principal for the 1st year = 600$
Interest for the 1st year = 600 x 10 X 1 / 100
= 60$
Amount at the end of the 1st year = $ ( 600 + 60 ) = 660$

Principal for the 2nd year = 660$
Interest for the 2nd year = 660 x 10 x 1 / 100
= 66$
Amount at the end of the 2nd year = $ ( 660+66 ) = 726$

Principal for the 3rd year = 726$
Interest for the 3rd year = 726 x 10 x 1 / 100 = 72.6$
Amount at the end of the 3rd year = $ ( 726 + 72.6 ) = 798.6$

:- Compound Interest = $ [ 798.6 - 600 ] = 198.6$