Question

calculate the compound interest for second year on 1200 rupees inveted for 4 years at 5 percent per annum. Please tell. ​

Answer 1

Answer:

The interest of one year =

100

1,200×5×1

=Rs.60

Now, principle for second year=1,200+60

=Rs.1,260

Further, the interest for 2nd year =

100

1,260×5×1

=Rs.63

Now, principal for 3rd=1260+63

=Rs.1,323

Further, the interest for 3rd year=

100

1323×5×1

=Rs.66.15

Now, principal for 4th year=1,323+66.15

=Rs.1,389.15

Further, the interest for 4th year=

100

1,389.15×5×1

=Rs.69.46

Principal after four year=1,389.15+69.46

=Rs.1,458.61

Total compound interest for four year=1,458.61−1,200

=Rs.258.61.