Question

Ramesh invests 512800 for three years at the rate of 10% per annum compound interest.
Find :
(i) the sum due to Ramesh at the end of the first year.
(ii) the interest he earns for the second
year.
(iii) the total amount due to him at the end of three years.​

Answer 1

Answer:

Correct question :

Ramesh invests Rs 12800 for three years at the rate of 10% per annum compound interest.

Find :

(i) the sum due to Ramesh at the end of the first year.

(ii) the interest he earns for the second

year.

(iii) the total amount due to him at the end of three years.

Solution :

I)

For the first year: We have,

Principal = 12800, Rate of interest 10% per annum

Interest = Rs 12800 x 10 x 1/100

= Rs 1280

Sum due to Ramesh at the end of the first year

Amount at the end of the first year

= Principal + Interest

= Rs 12800 + Rs 1280

= 14080 Rs

ii)

For the second year: We have,

Principal Amount at the end of the first year =Rs 14080

Rate of interest = 10% per annum

Interest = Rs(14080 x 10 x1/100)

= Rs 1408

Thus, Ramesh earns Rs 1408 as interest in the second year.

Amount at the end of second year

= Principal + Interest

= Rs 14080 + Rs 1408

= Rs 15488

III)

For the third year: We have,

Principal= Amount at the end of second year = Rs 15488

Rate of interest = 10% per annum

Interest =Rs(15488 x 10 x 1/100)

= Rs 1548.80

Amount = Principal + Interest

= Rs 15488 + 1548.80

= Rs 17036.80

∴ Thus, total amount due to Ramesh at the end of three years = Rs 17036.80