Question

8. Ms Patel invests Rs 80,000 at a compound interest rate of 10% p.a. for 2 years while Ms Kapoor
invests Rs 1,00,000 at a compound interest rate of 8% for 3 years. Who will earn more and by how?​

Answer 1

Step-by-step explanation:

For 1st year : 

Since, money invested at the beginning of the year = Rs. 6,000

⇒ Principal for 1st year = Rs. 6,000

∴   Interest =Rs.1006,000×10×1=Rs.600

And,   amount =Rs.6,000+Rs.600=Rs.6,600

For 2nd year:

Since, Rs. 6,000 is invested again at the beginning of the second year, therefore, for the second year, principal =Rs.6,600+Rs.6,000=Rs.12,600

Interest =Rs.10012,600×10×1=Rs.1,260 

And,  amount =Rs.12,600+Rs.1,260=Rs.13,860

∴ Amount of her total saving upto the end of the second year =Rs.13,860

(ii) since, Rs. 6,000 is invested again at the beginning of the third year,

∴ Amount of her total saving at the beginning of the third year

=Rs.13,860+Rs.6,000=Rs.19,860