Question

a sum of Rs 30, 000 is invested for 3 years at 7 1/2 % p.a . compound intrest . 1)what is the at the end of the second year?

Answer 1

$r = 7 \frac{1}{2} \% = \frac{15}{2}\% at the end of two years. \\ amount = p {(1 + \frac{r}{100} )}^{n} \\ = 30000 \times {(1 + \frac{15}{2 \times 100} )}^{2} \\ = 30000 \times {(1 + \frac{3}{40}) }^{2} \\ = 30000 \times \frac{43}{40} \times \frac{43}{40} \\ = \frac{138675}{4} \\ = 34668.75 \: rs$