# Maria invested Rs. 80,000 in a business. She would be paid interest at 5% per annum compounded annually. Find(i) the amount standing to her credit at the end of second year and (ii) the interest for the third year.

i. Principle = 80,000

Rate of interest per annum = 5%

Time = years

Compound interest for 2 years

Amount =

=

= 88,200

Compound interest = Amount – principle

= 80,000 - 88,200 = 8,200

8,200 will be credited at the end of 2 years

ii. Compound interest for 3 years

Amount =

=

= 92,610

Compound interest = Amount – principle

= 80,000 – 92,610 = 12,610

Compound interest for 3rd year

= compound interest of 3 years – compound interest of 2 years

= 12,610 - 8,200

= 4,410

Compound interest for the 3rd year is 4,410

Rate this question :

How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Related Videos
Mathematics in Daily Life34 mins
Mathematics in Real Life34 mins
Champ Quiz | History of Indian Mathematics33 mins
Conserve Life Around Us42 mins