Question

Find the amount and compound interest on a sum of 15,000 at 6% per annum for 3 years compounded
annually.​

Answer 1

Principal = Rs 15000

First year:

Principal = Rs 15000

Interest = 8%

Amount = 15000 + (0.08 x 15000) = Rs 16200

Second year:

Principal = Rs 16200

Interest = 10%

Amount = 16200 + (0.1 x 16200) = Rs 17820

Third year:

Principal = Rs 15000

Interest = 12%

Amount = 17820 + (0.12 x 17820) = Rs 19958.40

Interest = 19958.4 - 15000 = Rs 4958.40

Answer: Amount = Rs 19958.40 and Interest =  Rs 4958.40

Answer 2

Answer:

Simple Interest

I=

1 0 0

P N R

Here for first year,

P=

Rs.15,000

N=

1

year

R=

6

%

So, Interest at the end of 1st year

I=

100

15,000×1×6

=

Rs.900

And for second year,

P=

Rs.15,000+

Rs.900=

Rs.15,900

N=

1

year

R=

8%

I=

100

15,900×1×8

=

Rs.1272

And, for third year,

P=

Rs.15,900+

Rs.1,272=

Rs.17,172

N=

1

year

R=

10%

I=

100

17,172×1×10

=

Rs.1,717.2

So, total interest

=

Rs.900+

Rs.1,272+

Rs.1,717.2=

Rs.3,889.20