Question

Calculate the compound interest for the second year on Rs. 15000 invested for 5 years at 6% per annum.

Answer 1

Principal(P)=Rs. 15000
Rate(R)=6%p.a.
Period(n)=5 years
Interest for the first year= $\frac{PTR}{100}$
= $\frac{15000\times 6\times 1}{100}=Rs.900$
$\therefore$ Amount for the first year=Rs. 15000 -900 =Rs. 15900
Principal for the second year=Rs. 15900
Interest for the second year= $\frac{15900\times 6\times 1}{100}$
= $159\times 6=Rs.954$