compound interest for the third year is 1000 on a
certain sum at the rate of 10%. what is the
compound interest for the 7th year?
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Step-by-step explanation:
P= Rs. 1000,
R=10%, p.a.
T=3 years
Interest for the 1st year
=
100
P×R×T
=
100
1000×1×10
=Rs.100
Amount after the 1st year = Principal for the 2nd year =1000+100=Rs.1100
Interest after 2nd year =
100
1100×1×10
=Rs.110
Amount after the 2nd year =Principal ( for the 3rd year) =1100+110=Rs.1210
Interest for the 3rd year =
100
1210×1×10
=Rs.121
Amount after the 3rd year =1210+121=Rs.1331
Compound interest for three years =Amount (after 3 years) - (initial)Principal
=Rs.1331−Rs.1000=Rs.331
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