Question

if rs20000 is deposited for 3 years at 5% compounded annually.then find the principal for second year

Answer 1

bonjour dear!

As we know Compound interest of the 1st year is the principal of 2nd year hence

P=20,000

R=5%

Time=1year

Ci=p (1+r/100-1)^n (n=time)

Ci =20,000 (1+5/100 -1)

20000 (100+5/100 -1)

20000×105/100-1

=Rs 1000/-

2nd year P(principal)=20000+1000

=Rs21000/-

hope this helps

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Answer 2

Step-by-step explanation:

here,

p= rs 20000

r= 5%

t= 1 year

C.I. = p[(1+r/100)^n-1] n= time

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

= 20000(100+5/100)

= 20000×105/100-1

= rs 1000

2nd year p(principal)= 20000+1000

= rs 21000

this is your answer....