Mario took loan of ₹50000 from Bank at the rate of interest 8% per annum compounded manually.
Find intrest earned in first year. What will be the principle for second year?
Find compound interest for 3 years
Answers
Principle Amount P = Rs. 50,000
Rate Per Annum R = 8%
Time Span T = 3 years
Interest 1 = P×R×T
100
I 1 = Rs. 50,000 × 8 × 1
100
= Rs. 500 × 8
= Rs. 4,000
New Principle = Rs. 50,000 + Rs. 4,000
= Rs. 54,000
Now,
Interest 2 = P×R×T
100
I 2 = Rs. 54,000 × 8 × 1
100
= Rs. 540 × 8
= Rs. 4,320
New Principle = Rs. 54,000 + Rs. 4,320
= Rs. 58,320
Now,
Interest 3 = P×R×T
100
I 3 = Rs. 58,320 × 8 × 1
100
= Rs. 583.2 × 8
= Rs. 4,656.6
New Principle = Rs. 58,320 + Rs. 4,656.6
= Rs. 62,976.6
Compound Interest = New Principle - Old Principle
= Rs. 62,976.6 - Rs. 50,000
= Rs. 12,976.6