Question

A man invests Rs. $46875$ at $4\%$ per annum compound interest for $3$ years, then calculate the interest for the third year.

Answer 1

$P=46875$, $R=4\%$, $T=3$

$A=P(1+R{)}^T$

$A=46875\times 5^3$

$A=46875\times 125=5859375$

This stands as principal for Third year

$I=\frac{A\times R\times T}{100}$

$\frac{5859375\times 4\times 3}{100}=703125$