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.

Answer 1

Answer:

Step-by-step explanation:

Given:

1. Principle = p = 12,000
2. Time = n = 2 yrs
3. Rate of interest = 10% i.e. 0.1%

To Find:

1. Compound interest for 2 yrs
2. Amount at the beginning of third year

Formula used:

1. $\boxed{CI = P(1+i)^n-1}$
2. $\boxed{Amt = p(1+i)^n}$

Solution:

$\boxed{CI = P(1+i)^n-1}$

Substitute the values to the equation

We get,

$CI = 12,000(1+0.1)^2-1$

$CI = 12,000(1.1)^2-1$

$[(1.1)^2-1] = 0.21$

$CI = 12,000 * 0.21$

$\boxed{CI = 2,520}$

Final answers:

1. Thus the compound interest for 12,000 at 10% for 2 yrs is 2,520
2. The amount at the beginning of third year is $\boxed{Amt = Principle + Interest}$
3. $\boxed{Amt = 12,000 + 2,520 = 14,520}$

Answer 2

Step-by-step explanation:

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.