Question

A man invests Rs.9600 at 10% per annum compound interest for 3
years.
Calculate
Amount at the end of first year
​

Answer 1

Answer:

Principal (P) = Rs. 9600

Rate (R) = 10% p.a

Period (n) = 3 Years

(i) ∴ Interest for the first year = PRT/100

= (9600 x 10 x 1)/100 = Rs. 960

(ii) Amount at the end of first year

= P + S.I = Rs. 9600 + 960 = Rs. 10560

(iii) Principal for the second year = Rs. 10560

Interest for the second year = (10560 x 10 x 1)/100

= Rs. 1056

∴ Amount after second year = Rs. 10560 + 1056 = Rs. 11616

(iv)  Principal for the third year = Rs. 11616

Interest for the third year = (11616 x 10 x 1)/100

116.16 x 10 = Rs. 1161.60