Question

Vikram invests ₹15625 for three years at a certain rate of interest compounded annually. At the end of one year it amounts to ₹16875. Find the (i) rate of interest per annum
(ii) interest accrued in the second year
(iii) amount due to him at the end of third year
(iv) interest earned in third year
(v) interest earned in three years.

Answer 1

Step-by-step explanation:

Vikram invests = ₹15625

1 year amount = ₹ 16875

difference of two amount = 1250₹

(i) rate of interst = (1250/15625)*100

= 8%

(ii) interest accrued in the second year,

P = 16875 ₹

r = 8%

interst = (8/100)* 16875

= 1350₹

(iii) amount due to him at the end of third year

$CI = P{ ( {1 + r \div 100}^{n} ) - 1)$

= 15625{ (1+ 8/100)³-1}

= 15625 {( 27/25)³-1}

= 15625 {(27/25 *27/25 * 27/25)-1}

CI = 4058rs

A = P + CI

= 15625 + 4058

A = 19683₹

(iv) interest earned in third year

P = 18225₹

I = 8 %

interest =( 8/100 )* 18225

= 1458₹

(v) interest earned in three years.

interst = 1st yr + 2nd yr + 3 Rd yr

= 1250+1350+1458

CI = 4058₹