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Compound Interest | Compound Interest Exercise 2.1

Question 2

. A man invests ₹ 46875 at 4% per annum compound interest for 3 years. Calculate:

(i) the amount standing to his credit at the end of the second year.

(ii) the interest for the third year.

(iii) the interest for the first year.

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It is given that

Principal = ₹ 46875

Rate of interest = 4% p.a.

(i) Interest for the first year = Prt/100

Substituting the values

= (46875 × 4 × 1)/ 100

= ₹ 1875

So the amount after the first year or principal for the second year = 46875 + 1875 = ₹ 48750

Here

Interest for the second year = (48750 × 4 × 1)/ 100

So we get

= ₹ 1950

(ii) We know that

The amount at the end of the second year = 48750 + 1950

= ₹ 50700

(iii) Interest for the third year = (50700 × 4 × 1)/ 100 = ₹ 2028

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Our top 5% students will be awarded a special scholarship to Lido.

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Question 2

. A man invests ₹ 46875 at 4% per annum compound interest for 3 years. Calculate:

(i) the amount standing to his credit at the end of the second year.

(ii) the interest for the third year.

(iii) the interest for the first year.

Looking to do well in your science exam ? Learn from an expert tutor. Book a free class!

It is given that

Principal = ₹ 46875

Rate of interest = 4% p.a.

(i) Interest for the first year = Prt/100

Substituting the values

= (46875 × 4 × 1)/ 100

= ₹ 1875

So the amount after the first year or principal for the second year = 46875 + 1875 = ₹ 48750

Here

Interest for the second year = (48750 × 4 × 1)/ 100

So we get

= ₹ 1950

(ii) We know that

The amount at the end of the second year = 48750 + 1950

= ₹ 50700

(iii) Interest for the third year = (50700 × 4 × 1)/ 100 = ₹ 2028

Our top 5% students will be awarded a special scholarship to Lido.

subject-cta
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