Question

Rohan deposited Rs. 12,000 in a firm for 3 years, compounded annually at 10% per annum. Calculate. (a) Interest for first year (b) Interest for second year (c) Amount at the end of second year​

Answer 1

Deposited= 12,000

Time= 3 years

Interest= 10% per annum

Interest of first year- 10/100 * 12,000= 1,200

Now total= 12,000+1,200 = 13,200

Interest of second year- 10/100 * 13,200= 1,320

Total amount after 2 years= 13,200 + 1,320 = 14,500

Ans- (a) - Rs. 1,200, (b) - Rs. 1,320, (c) - Rs. 14,500