Question

A man invests 650 for 3 years at 9% per
annum. Calculate the:
(i) interest for the first year,
(ii) amount at the end of the second year,
(iii
) compound interest in 3 years.​

Answer 1

12,500 lent at compound Interest for two years at 10% per annum fetches Rs.

Answer 2

Step-by-step explanation:

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.=

100

PNR

=

100

8,000×1×10

=Rs800

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.=

100

PNR

=

100

8,800×1×10

=Rs880

Thus, Compound interest for the second year =Rs880