Question

What sum will amount to 2420 in 2 years if the rate of interest is 10% p.a. and the interest is compounded annually? Also, find the interest earned for third year
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Answer will be Rs 242 or 240
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Answer 1

Answer:

Rs 242

Step-by-step explanation:

$\sf \large \: Solution:$

We are given,

• Amount = Rs2420
• Time Ieriod = 2 years
• R=10 %p.a

We have,

$\sf \: A = P \bigg \lgroup \frac{1 + R}{100} \bigg \rgroup ^ n \\ \\ \sf\Rightarrow 2420=P \bigg \lgroup 1+ \frac{10}{100} \bigg \rgroup ^ 2 \\ \\ \sf \Rightarrow 2420= P \bigg \lgroup \frac{11}{10} \bigg \rgroup ^ 2 \\ \\ \sf \: \Rightarrow 2420=P × \frac{121}{ 100} \\ \\ \sf \: \Rightarrow P=2420× \frac{ 100}{ 121} \\ \\ \sf \Rightarrow P= Rs2000 .$

Hence, a sum of Rs2000 will amount to Rs2420 in 2 years at 10% p.a. compounded annually.

Interest for 3rd year

$\sf= \frac{ P×R×T}{ 100} \\ \\ \sf= \frac{2420 × 10 × 1}{100} \\ \\ \sf \: = Rs 242$

Thus, interest earned for third year is Rs242.