Calculate the compound interest compounded in two years on 14,000
invested for 3 years at 10% per annum. Also, find the sum due at the end of the third year.
Answers
Answer:
Principal (P)=Rs.4000
Rate of Interest (r)=10%
Time =2 years and 3 months
Here first we take n=2 years.
⇒ Amount for first 2 years (A)=P(1+
100
r
)
n
=4000(1+
100
10
)
2
=4000(
10
11
)
2
=4000×
100
121
=Rs.4840
⇒ The amount after two years =Rs.4840
⇒ Now, Principal =Rs.4840
Simple interest for last 3 months i.e.
4
1
years =
100
PRT
=
100×4
4840×10×1
=Rs.121
⇒ Amount after 2 years and 3 months =Rs.4840+Rs.121=Rs.4961
⇒ C.I.=A−P
=Rs.4961−Rs.4000
=Rs.961
∴ The compound interest is Rs.961