1.

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» Here, Principal , `P = 8000` Rs
Rate of interest, `r = 5%`
(i) The amount credited at the end of the second year, `A = P(1+r/100)^t`
`A = 8000(1+5/100)^2 = 8000**21/20**21/20``A = 20**441 = 8820` Rs

(ii) Interest only for the third year can be calculated by finding simple interest on the amount after 2nd year
that is, on `8820` Rs as we have calculated in first part.
Interest`(I) = (P**r**t)/100 = (8820**5**1)/100 = 441` Rs


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