Question

Give the principle $=40,000,$ rate of interest $=8\%$ p.a. compounded annually. Find
Principle for $2nd$ year.

Answer 1

As per given question,

Amount of $1$ year is equal to the principle of second-year

$A=40000{(1+\frac{8}{100})}^1=40000\times \frac{108}{100}=Rs.43200$