Question

ems
1. Ramesh invests 12,800 for three years at the
rate of 10% per annum compound interest.
Find:
(i) The sum due to Ramesh at the end of
the first year.
(ii) The interest he earns for the second
year.
(iii) The total amount due to him at the end
of the third
year.
[2007]​

Answer 1

Step-by-step explanation:

Principle Amount invested by Ramesh = Rs. 12800

Rate (%) = 10%

C.I (Compound Interest) = PTR/100

Where, P = Principle Amount

           T = Time

           R = Rate percent

(a) Sum due to Ramesh at the end of first year

      C.I = PTR/100

           P = Rs. 12800

           R = 10

           T = 1 (1st year)

     Compound Interest = (12800 x 1 x 10)/100

                                     = Rs. 1280

     Therefore, due amount at the end of first year

              = Principle Amount + Interest gained

              = 12800 + 1280 = Rs. 14080

(b) Interest for the second year

 C.I = PTR/100

      P = Rs. 14080

      T = 2 (2nd year)

      R = 10

C.I = (14080 x 2 x 10)/100

     = 1408
Therefore, the Interest for the second year = Rs. 1408

(c) The total amount due to him at the end of 3rd year

Amount due to him at the end of 2nd year = Principle Amount + Interest Gained

                                                                  = 14080 + 1408

                                                                  = Rs. 15488

C.I for the 3rd year = PTR/100

      P =  Rs. 15488

      T = 3

      R = 10

C.I = (15488 x 3 x 10)/100

     = Rs. 1548.80

Therefore,

Amount due at the end of the 3rd year

= Principle Amount (from the beginning of the 3rd year) + Interest Gained

= 15488 + 1548.80

= Rs. 17036.80