Question

Ramesh invests rs12800 for three years at the rate of 10% per annum compound interest Find (I) the sum due to Ramesh at the end of the first year (ii) the interest he earns for the second year (iii) the total amount due to him at the end of three year​

Answer 1

1) 14080

2) 1408

3) 17036.80

Explanation:

It is given that

Principal= 12800

Rate of interest =10% p.a

(i) We know that Interest for the first year=

(12800×10×1)/100

= 1280

So the sum due at the end of first year= 12800+1280

= 14080

(ii) Principal for second year = 14080

So the interest for the second year

=(14080×10×1)/100

=1408

iii) We know that Sum due at the end of second year

= 14080+1408

=15488

Here

Principal for third year= 15488

Interest for the third year= (15488×10×1)/100

=1548.80

So the total amount due to him at the end of third year= 15488+1548.80

= 17036.80