compounded annually. Find
7. Aryman invested P10000 in a company. He would be paid interest at 7% per annum
(i) the amount received by him at the end of 2 years.
(ii) the interest for the 3rd year.
um compound
Answers
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Step-by-step explanation:
Given
Investment to a company (P) = Rs 10000
Rate of interest (R) = 7% p.a.
Period (n) = 2 years
Hence,
Amount (A) = P {1 + (R / 100)}
n
= Rs 10000 {1 + (7 / 100)}
2
= Rs 10000 × (107 / 100) × (107 / 100)
On simplification, we get,
= Rs 11449
Amount after 3
rd
year = Rs 11449 × (107 / 100)
We get,
= Rs 12250.43
Therefore,
Interest on the 3
rd
year = Rs 12250.43 – 11449
= Rs 801.43
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