Question

Mrs. Suneeta saves Rs. 8,000 every year and invests it at the end of the year at 10% per annum compound interest. Calculate her total amount of saving at the end of the third year.

Answer 1

For the first year

Suneeta saves =Rs 8000

At the end of the first year she invest 8000 at 10% CI, so the amount she receive $=8000(1+\frac{10}{100})$

$\Rightarrow 8000\times \frac{110}{100}=Rs.8800$

In the second year she again save Rs.8000

So total amount she save at the end of second year$=8000+8800=Rs16800$

Again she invest Rs.16800 at 10 CI, so the amount she receive$=16800(1+\frac{10}{100})$

$\Rightarrow 16800\times \frac{110}{100}=Rs.18480$

In the third year she again save Rs. 8000

So the total amount of saving at the end of third year$=18480+8000=Rs.26480$