Question

Maria invested 80000 in a business should be paid interest at 5% per annum compounded annually find the amount standing to her credit at the end of the second year and the interest for the third year

Answer 1

Answer:

Ans. (i) Here, Principal (P) = Rs. 8000, Rate of Interest (R) = 5%, Time = 2 years

Step-by-step explanation:

Amount (A) = 8000*[1+5/100]^2

= Rs. 8,820

(ii) Here, Principal (P) = Rs. 8000, Rate of Interest (R) = 5%, Time = 3 years

amount (A) = 8820*[1+5/100]

= Rs. 9,261

Interest for 3rd year = A – P

= Rs. 9,261 – Rs. 8,820 = Rs. 441