Maria invested Rs 8,000 in a business. She would be paid interest at 5% per annum compounded annually. Find
(i) The amount credited against her name at the end of the second year.

(ii) The interest for the 3rd year.

Question

Philoid · Accepted Answer

(i) Here, Principal (P) = Rs. 8000, Rate of Interest (R) = 5%, Time, n = 2 years

= Rs. 8,820

(ii) Here, Principal (P) = Rs. 8000, Rate of Interest (R) = 5%, Time, n = 3 years

= Rs. 9,261

Interest for 3^rd year = A – P

= Rs. 9,261 – Rs. 8,820 = Rs. 441

Maria invested Rs 8,000 in a business. She would be paid interest at 5% per annum compounded annually. Find(i) The amount credited against her name at the end of the second year.(ii) The interest for the 3rd year.