Preeti invested ₹50,000 at 8% per annum for 3 years and the interest is compounded annually . Calculate: (A) the amount standing to her credit at the end of the second year. (B) the interest for third year
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Step-by-step explanation:
We know that,
P'=P(1+r)^t
P'= amount of money after t time
P = principal = 50000
r = rate of interest = 8% compounded annually
t = time period = 2 (as we are calculating the amount at the end of 2 year)
Putting the values,
P'=50000(1+0.08)^2
=50000(1.08)^2
=50000\times 1.1664
=58320
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