Question

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

Answer 1

Hey mate here is ur answer

Answer 2

Answer:

Principal = Rs.50000

Rate of interest = 8%

Time = 3 years

We are supposed to find the amount after 2 years

So, time = 2 years

Formula : $A=P(1+r)^t$

$A=50000(1+\frac{8}{100})^2$

$A=58320$

So, the amount standing to her credit at the end of the second year is 58320

Now we are supposed to find the interest for third year

Interest till second year = Amount of 2 years - Principal= 58320 - 50000 = Rs.8320

Calculate the amount after 3 years

$A=50000(1+\frac{8}{100})^3$

$A=62985.6$

Interest till third year = Amount of 2 years - Principal= 62985.6 - 50000 = Rs.12985.6

So, Interest for third year = Interest till 3rd year - Interest till 2nd year

Interest for third year = 12985.6 - 8320

Interest for third year =Rs.4665.6

So, the interest for third year is Rs.4665.6