Question

Preeti invested rupees 50000 at 8% per annum for 3 years and the interest and the interest is compounded annually calculated the interest for the third year

Answer 1

P=50,000
R=8%p.a
T=3 years
Interest for first year=50,000*8*1/100=4000
Amount=50,000+4000=54,000

Interest for 2nd year=54,000*8*1/100=4320
Amount=54000+4320=58320

Interest for 3rd year=58320*8*1/100=4665.6

Amount=58320+4665.6=62,985.6

Compound Interest=62,985.6-50,000=12,985.6