Question

Abhimanyu invested Rs 100000 at 13 % per annum compounded annually. Find the following: (i) The amount standing to his credit at the end of the second year. (ii) The interest for the third year.

Answer 1

Answer:

Given ;

• Amount = ₹1,00,000

• Rate = 13% p.a.

• Time = 3 years ( according to understanding )

__________________________

Now , Asked is ;

(i) The amount standing to his credit at the end of the second year.

(ii) The interest for the third year.

__________________________

(i) First Question ;

• We know the Formula ;-

=> A = P ( 1+R x 1/2 ÷ 100 )2n

=> A = 100000 ( 1 + 13 x 1/2 ÷ 100 )4

=> A = 100000 ( 1 + 6.5/100)4

=> A = 100000 ( 106.5/100)4

=> A = 100000 x 106.5/100 x 106.5/100 x 106.5/100 x 106.5/100

=> A = ₹ 128,646.63

• Hence , the amount standing to his credit at the end of the second year is ₹ 128,646.63.