Question

Kapil invest Rs.12,000 for three years at 10% per annum compound interest in bank of
Baroda.Calculate. (i)the compound interest for the second year (ii) the
amount standing to his credit at the beginning of 3rd year.
step by step pls do it fast

Answer 1

Hint: First, we have found the interest for the first year, and then calculate the amount at the end of first year. Similarly find the interest and amount for the second and third year using simple interest formula and amount formula. Finally we find the compound interest after 3

years and we will get the required answer.

Formula used: Amount = Principal + Interest.

Simple Interest=Principal × Rate × Time100

Compound interest = Final amount – Original Principal.

Complete step-by-step solution:

It is given that the question stated the value of principal, rate and time.

Since we called the money invested is called principal.

So, we can write it as the principal = Rs 12000.

Also, rate is the interest paid on Rs 100 for a specific period.

It is given that the rate = 10% per annum.

Also, it is given that the time for investing Rs 12000 is 3 years.

In mathematically we can write it as, Time = 3 years.

Now we have to find the interest for the first year using the formula for Simple interest

That is we can write it as, =Principal × Rate × Time100

Putting the given values and we get,

Interest for the first year = Rs 12000×10×1100

On simplification we get

⇒

Rs 1200

Also, we have to find the amount at the end of first year using the amount formula,

So we can write it as Amount = Principal + Interest.

Amount at the end of first year = Rs 12000 + Rs 1200

Let us add the terms and we get

⇒

Rs 13200

Again we can find the interest for the second year using Simple interest

⇒Principal × Rate × Time100.

Use the new Principal amount at the end of first year = Rs 13200

Time =1

year

Putting the value and we get

Interest for the second year = Rs 13200×10×1100

On simplification we get

⇒ Rs 1320

Similarly we can find the amount at the end of second year using Amount = Principal + Interest.

Amount at the end of second year = Rs 13200 + Rs 1320

⇒ Rs 14520

Find the interest for the third year using Simple interest =Principal × Rate × Time100.

Use the Principal amount for end of the second year = Rs 14520

Putting the values and we get

Interest for the third year = Rs 14520×10×1100

On simplification we get,

⇒ Rs 1452

Find the amount at the end of third year using Amount = Principal + Interest.

Amount at the end of third year = Rs 14520 + Rs 1452

Let us add the term and we get

⇒Rs 15972

Now we have to find out the compound interest for 3 years.

Compound interest for 3 years = Final amount – (original) Principal

⇒Rs 15972 - Rs 12000

On subtracting we get

⇒ Rs 3972

Thus, the amount and the compound interest that Jacob will get after 3 years are Rs 15972 and Rs 3972 respective

Answer 2

Principal for the first year = Rs 12000

Rate of interest = 10% p.a.

Interest for the first year = Rs (12000 × 10 × 1) / 100

= Rs 1200

Amount at the end of first year = Rs 12000 + Rs 1200

= 13200

Principal for the second year = Rs 13200

Interest for the second year = Rs (13200 × 10 × 1) / 100

= Rs 1320

Amount at the end of second year = Rs 13200 + Rs 1320

= Rs 14520

Principal for the third year = Rs 14520

Interest for the third year = Rs (14520 × 10 × 1) / 100

= Rs 1452

Amount at the end of third year = Rs 14520 + Rs 1452

= Rs 15972

Hence,

Compound interest for 3 year = Final amount – (original) Principal

= Rs 15972 – Rs 12000

= Rs 3972