Question

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.

Answer 1

(i)

Interest after 2 years = 8820-8000=820

(ii) The interest for the 3rd year.

Solution: Interest for the 3rd year = 8820 x 5%=441