Question

A man invests rupees 3575 at 4% per annum compound interest for 3 years. Calculate:
a) 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.
d) The amount at the end of third year.

Answer 1

Answer:

Interest for the 1st year=3575×(4/100)×1=143

Amount at the end of 2nd year=3575(1+4/100)^2

=3575×(1.04)^2=3866.72

Amount at the end of 3rd year = 3575×(1.04)^3=4021.89

Interest for 3rd year,=4021-3866=155