Question

A man invests 30800 at 5% per annum compound interest for 3 years. Calculate:
(a). the intrest for the first year.
(b). the ammount standing to his credit at the end of the second year
(c). the intrest for the third year​

Answer 1

Answer:

100+2456+7909-5745+74688

Answer 2

The answers are as follows-

(a) The interest for the first year is Rs 1540.

(b) The amount standing at the end of the second year is Rs 33966.45

(c) The interest at the end of the third year is Rs. 1698.33

GIVEN

Principal amount = Rs 30800

Rate of interest = 3 years.

Time = 3 years.

TO FIND

• (a)the interest for the first year.
• (b) the amount standing to his credit at the end of the second year
• (c)the interest for the third year.

SOLUTION

We can simply solve the above problem as follows-

(A)The Intrest For The First Year.

We will calculate the interest for the first year by applying the following formula,

Simple Interest = PRT/100

Where,

P = principle amount for the first year = 30800

R = Rate of interest = 5%

T = Time taken = 1 years

Putting the values in the above formula we get,

$S. I = \frac{30800 \times 1\times 5}{100}$

= 1549

Hence, the interest for the first year is Rs 1540.

(B). The Amount Standing To His Credit At The End Of The Second Year

Principal Amount = Initial Amount deposited + Intrest = 30800+1549 = Rs 32,349

Rate of interest = 5%

Time taken = 1 year.

$S.I = \frac{32349 \times 5 \times 1}{100}$

= 161.45 Rs

To Calculate the Amount we apply the following formula,

Amount = P + SI

A. = 32349 + 161.45 = 33966.45

Hence, the amount standing at the end of the second year is Rs 33966.45

(c)The interest for the third year.

Principle AMount = Amount at the second year = Rs 33966.45

Rate = 5%

Time = 1 year

$S.I = \frac{33966.45 \times 5 \times 1}{100}$

=Rs 1698.33

Hence, The interest at the end of the third year is Rs. 1698.33

Hence, The answers are as follows-

• Hence, The answers are as follows- (a) The interest for the first year is Rs 1540.

• Hence, The answers are as follows- (a) The interest for the first year is Rs 1540. (b) The amount standing at the end of the second year is Rs 33966.45

• Hence, The answers are as follows- (a) The interest for the first year is Rs 1540. (b) The amount standing at the end of the second year is Rs 33966.45 (c) The interest at the end of the third year is Rs. 1698.33

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