Question

A person invests Rs 40,000 for 3 years at a certain rate of interest compounded annually. At the end of one year this sum amounts to RS 44000 . Calculate
(i) the rate of interest per annum.
(ii) the interest for the second year
(iii) the amount at the end of 3 years​

Answer 1

Answer:

(i)10%  (ii) Rs 8,000 (iii) Rs 52,000

Step-by-step explanation:

Here,

Amonut= A

Principle= P

Interest=I

Rate= r/ rate

Time=T

(i) the rate of interest per annum.

I=P*T*R/100

4000=40,000*1 year*rate /100

4000=400*rate

4000/400=rate

10%=rate

(ii) the interest for the second year

We know,

I = P*T*R/100

I=40,000*2*10/100

I=8,00,000/100

I= Rs 8,000

(iii) the amount at the end of 3 years​

I = P*T*R/100

I = 40,000*3*10/100

I= 12,00,000/100

I= Rs 12,000

A= I+P

A=  Rs 12,000+  Rs 40,000

A= Rs 52,000