Compute the interest on Rs. 10,000 for 7 years at 6% per
annum, the interest being paid annually.
Answers
Answer:
[assuming compound interests]
Interest at the end of 1st year
10,000 + (6% of 10,000)
= 10,000 + (6/100 ×10,000)
= 10,000 + 600
= 10,600.
Interest at the end of 2nd year
10,600 + (6% of 10,600)
= 10,600 + 636
= 11,236.
Interest at the end of 3rd year
11,236 + (6% of 11,236)
= 11,236 + 674.16
= 11,910.16 which is 11,910 approximately.
Interest at the end of 4th year
11,910 + (6% of 11,910)
= 11910 + 714.6
= 12,624.60 which is 12,625 approximately.
Interest at the end of 5th year
12,625 + (6% of 12,625)
= 12625 + 757.5
= 13,382.50 which is rounded to 13,383.
Interest at the end of 6th year
13,383 + (6% of 13382)
= 13383 + 802.98
= 14,185.98 which is rounded to 14,186.
Interest at the end of 7th year
14,186 + (6% of 14186)
= 14186 + 851.16
= 15,037.16 which is 15,037 approximately.