Find compound interest when a sum of Rs 8,000 is invested for 3years at the rate of 5%
per annum compounded annually.
Answers
Answer:
Principal for the first year = Rs.8000, Rate = 5% per annum, T = 1 year
Interest for the first year = =
100
P×R×T
=Rs.[
100
8000×5×1
]=Rs.400
∴ Amount at the end of the first year = Rs. (8000 + 400) = Rs. 8400
Now principal for the second year = Rs.8400
Interest for the second year =
100
P×R×T
=Rs.[
100
8400×5×1
]=Rs.420
∴ Amount at the end of the second year = Rs. (8400 + 420) =Rs.8820
Interest for the third year =
100
P×R×T
=Rs.
100
8820×5×1
=Rs.441
∴ Amount at the end of the third year = Rs.(8820 + 441) = Rs. 9261
Now we know that total C.I. = Amount - Principal = Rs. (9261 - 8000) = Rs. 1261
we can also find the C.I. as follows
Total C.I. = Interest for the first year + Interest for the second year + Interest for third year = Rs. (400 + 420 + 441) = Rs.1261
Step-by-step explanation:
Given principal amount = Rs. 8000
Time = 3yrs
Rate = 5%
C.I for 3 yrs = 8000 x 105100 x 105100 x 105100 − 8000= Rs. 1261
Now, C.I for 2 yrs = 8000 x 105100 x 105100= Rs. 820
Hence, the required difference in C.I is 1261 - 820 = Rs. 441.
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