Compound interest for the second year on ₹ 8000 for three years at 10% p.a.

Calculate the compound interest for the second year on ₹ 8000 for three years at 10% p.a.
Also find the sum due at the end of third year.

Solution:

It is given that
Principal = ₹ 8000
Rate of interest = 10% p.a.
We know that
Interest for the first year = Prt/100
Substituting the values
= (8000 × 10 × 1)/ 100
= ₹ 800
So the amount after the first year or principal for the second year = 8000 + 800 = ₹ 8800
(i) Interest for the second year = (8800 × 10 × 1)/ 100
= ₹ 880
So the amount after second year or principal for the third year = 8800 + 880 = ₹ 9680
Interest for the third year = (9680 × 10 × 1)/ 100
= ₹ 968
(ii) Amount due at the end of the third year = 9680 + 968
= ₹ 10648

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