Question

Asha invests rs 8000 at a certain rate for three yrs compounded annually . She finds at the end of the first year it amounts to rs 9200. Calculate(1) R%(2)interest acquired in second year (3)amount at the end of the third year

Answer 1

= 12169 rs

Explanation:

Asha invest total=rs 8000

Total years = 3

Amount after 1 year= 9200 rs

Interest on first year =9200-8000= 1200 rs

So for second and third years

A= P (1 + R/100)ⁿ

9200= 8000( 1+ R/100)¹

9200= 8000( 100+ R/100)

115= 100 +R

R = 15

So amount after second year

A= 8000 (1 +15/100)²

A= 10580

Interest on second is = 10580 –P-interest on ist

=10580-8000-1200

= 1380 rs

So total amount at the end

A = 8000 ( 1 +15/100) ³

=12169 rs