Question

if 20000 is deposited for 3 years at 5% compounded annually then what will be the principal for the second year

Answer 1

first year:
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principal = ₹20000

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time = 1yr , rate = 5% per annum

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Find the amount:
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if the person want to withdraw his deposited money after 1 year, it means in 2nd year. then

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the amount he will get after 1 year

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amount = p [ 1 + ( r/ 100 ) ]^t

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amount = 20000 [ 1 + ( 5/ 100 ) ]^1

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amount = 20000 × ( 105 /100 )

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= ₹21000

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since ,the person deposited ₹20000 for 3 years , so it means the person dont want to withdraw this amount of money after 1 year . so then this amount will become principal for 2nd year.

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Answer:
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principal for second year will be

= ₹21000

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Answer 2

Answer:

rupees 21,000

Step-by-step explanation:

principal - 20,000

rate of interest - 5% per annum

time - 3 years

so, formula is:-

p [1+r/100]t

20,000 [1+5/100]3

20,000 [105/100]

principal for second year is 21,000

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