Question

Saurabh invests Rs. 48,000 for 7 years at 10% per annum compound interest. Calculate :

(i) the interest for the first year.

(ii) the amount at the end of the second year.

(iii) the interest for the third year.

Answer 1

For 1^st year

P=Rs48,000; R=10% and T= 1year

Interest= Rs= Rs4,800

Amount= Rs48,000+ Rs4,800= Rs52,800

For 2^nd year

P=Rs52,800; R=10% and T= 1year

Interest= Rs= Rs5,280

Amount= Rs52,800+ Rs5,280= Rs58,080

For 3^rd year

P=Rs58,080; R=10% and T= 1year

Interest= Rs= Rs5,808