Question

Preeti invested rupees 50000 at 8% per annum for 3 years and the interest is compounded annually calculate the amount standing to her credit at the end of the second year be the interest for the third yea
r

Answer 1

1) a=p (1+r/100)n

=50000×(1+8/100)2

=50000×(1+2/25)2

=50000×(27/25)2

=50000×27/25×27/25

=rs 6561

2)a=p(1+r/100)n

=50000 (1+8/100)3

=50000 (1+2/25)3

=50000 (27/25)3

=50000×27/25×27/25×27/25

=62985.6

CI=A-P

=62985.6-50000

=12985.6

Hope this answer will help you out from the problem

Answer 2

Thank you for asking this question. Here is your answer:

P = P(1+r)^t

P is the amount of money after t time

P = Principal = 50000

R is the rate of interest = 8% which is compounded annually.

t is the time period which is 2

Now we will put the values

P = 50000 ( 1+0.08)^2

= 50000 (1.08)^2

= 50000 x 1.1664

= 58320

58320 is the final answer for this question.

If there is any confusion please leave a comment below.