Question

Mohan invested Rs.18000 in a bank of 2 years . At the rate of 10pcpa at
Compound interest. What amount will Mohan receive at end of 2 years?​

Answer 1

Step-by-step explanation:

For 1

st

year Principal (P)=Rs.16000, Rate (R)=5% Time (T)=1 year

∴ Interest=

100

16000×5×1

=160×5=Rs.800

∴ Amount at the end of first year=Rs.16000+800=Rs.16800

For 2

nd

year Principal (P)=Rs.16800, Rate (R)=5% Time (T)=1 year

∴ Interest=

100

16800×5×1

=168×5=Rs.840

∴ Amount at the end of second year=Rs.16800+840=Rs.17640

For 3

rd

year Principal (P)=Rs.17640, Rate (R)=5% Time (T)=1 year

∴ Interest=

100

17640×5×1

=

2

1764

=Rs.882

∴ Amount at the end of third year=Rs.17640+882=Rs.18522

Hence required amount=Rs.18522