Question

a man invested rupees 5600 at 14% per annum compound interest for 2 years calculate :-
(i) the interest for the first year
(ii) the amount at the end of the first year.
(iii) the interest for the second year, correct to the nearest rupee.​

Answer 1

Answer:

(1) 784

(2) 6384

(3) 893.76

Answer 2

Step-by-step explanation:

Given:-

A man invested rupees 5600 at 14% per annum compound interest for 2 years ?

To find:-

Calculate :-

(i) the interest for the first year

(ii) the amount at the end of the first year.

(iii) the interest for the second year, correct to the nearest rupee.

Solution:-

Given that :-

Money invested by a man = Rs. 5600

Principle =(P)=Rs. 5600

Rate of Interest =(R) = 14% per annum

Time (T) = 2years

Compound interest is calculated per annum ,

Per 1 year = 1 time

n=1

The number of time the interest calculated per 2 years = 2 times

n = 2 years

We have,

P = Rs. 5600

T=1 year

R = 14%

We know that

I = PTR/100

On Substituting these values in the formula

=>I = 5600×1×14/100

=> I=56×14

=>I = Rs. 784

Interest for the first year = Rs. 784

(or)

We know that

A = P[1+(R/100)]^n

On Substituting these values in the formula

=> A = 5600[1+(14/100)]^1

=> A= 5600[1+(14/100)]

=>A = 5600[(100+14)/100]

=>A= 5600[114/100)

=>A=(5600×114)/100

=>A=56×114

=>A= Rs. 6384

We know that

Amount = Principle - Interest

=> Interest=Amount - Principle

=> Interest=6384 - 5600

Interest = Rs. 784

I) Interest after one year = Rs. 784

(ii) The amount at the end of the first year =

Rs. 6,384

iii)We know that

A = P[1+(R/100)]^n

n=2

On Substituting these values in the formula

=> A = 5600[1+(14/100)]^2

=> A= 5600[1+(14/100)]^2

=>A = 5600[(100+14)/100]^2

=>A= 5600(114/100)^2

=>A=(5600×114×114)/(100×100)

=>A=(56×114×114)×100

=>A= Rs. 727776/100

=> A= Rs. 7277.76

=> A= Rs. 7278

(correct to the nearest rupee)

We know that

Amount = Principle - Interest

=> Interest=Amount - Principle

=> Interest= 7278- 5600

Interest = Rs. 1678

So , The interest after the end of two years

= Rs. 1678

Only for second year = 1678-784 = Rs. 894

Interest after two years = Rs. 1678

Interest for the only second year = Rs. 894

Answer:-

• I) Interest after one year = Rs. 784

• (ii) The amount at the end of the first year =
• Rs. 6,384
• iii)Interest for the only second year = Rs. 894

Used formulae:-

• I = PTR/100

• A = P[1+(R/100)]^n

• Amount = Principle - Interest

• A = Amount
• P = Principle
• T = time
• R=Rate of interest
• n= Number of time the interest calculated compoundly