Question

Archana invests 5,600 at 14% p.a. compound
interest for 2 years. Calculate:
(i)The interest for the 1st
year;
(ii) The amount at the end of the 1st year;
(iii) The interest for the 2nd year, correct to
the nearest .​

Answer 1

Answer:

For the first year: 

P= Rs. 5,600, N=1 year and R=14%

We have S.I. =100PNR=1005,600×1×14= Rs. 784

And Amount at the end of first year P+S.I.= Rs. 5,600+ Rs. 784= Rs. 6,384

Now, for the second year :

P= Rs. 6,384, N=1 year and R=14%

We have S.I.=100PNR=1006,384×1×14= Rs. 893.76

To the nearest rupee, it is Rs. 894.