Question

Mrs. Kapoor invested Rs. 6,000 every year at the beginning of the year, at 10% per annum compound interest. Calculate the amount of her total savings :
(i) upto the end of the second year.
(ii) at the beginning of the third year.

Answer 1

(i) For 1st year :
Since, money invested at the beginning of the year $=Rs.6,000$
$\Rightarrow$ Principal for 1st year $=Rs.6,000$
$\therefore$ Interest $=Rs.\frac{6,000\times 10\times 1}{100}=Rs.600$
And, amount $=Rs.6,000+Rs.600=Rs.6,600$
For 2nd year:
Since, $Rs.6,000$ is invested again at the beginning of the second year, therefore, for the second year, principal $=Rs.6,600+Rs.6,000=Rs.12,600$
Interest $=Rs.\frac{12,600\times 10\times 1}{100}=Rs.1,260$
And, amount $=Rs.12,600+Rs.1,260=Rs.13,860$
$\therefore$ Amount of her total saving upto the end of the second year $=Rs.13,860$
(ii) since, $Rs.6,000$ is invested again at the beginning of the third year,
$\therefore$ Amount of her total saving at the beginning of the third year
$=Rs.13,860+Rs.6,000=Rs.19,860$ Ans.