question_answer 1)

                Maria invested Rs 8,000 in a business. She would be paid interest at rate of 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:

                (i) P = R s 8,000 R = 5% per annum \[n=2\] years \[\therefore \]  \[A=P{{\left( 1+\frac{R}{100} \right)}^{n}}\] \[=8,000{{\left( 1+\frac{5}{100} \right)}^{2}}\] \[=8,000{{\left( 1+\frac{1}{20} \right)}^{2}}\] \[=8,000{{\left( \frac{21}{20} \right)}^{2}}\] \[=8,000\times \frac{21}{20}\times \frac{21}{20}\] = Rs 8,820 Hence, the amount credited against his name at the end of second year is Rs 8820. (ii) P = Rs 8,820 R = 5% per annum \[n=1\] year \[A=P{{\left( 1+\frac{R}{100} \right)}^{n}}\] \[=8,820{{\left( 1+\frac{5}{100} \right)}^{1}}\] \[=8,820\,\left( 1+\frac{1}{20} \right)\] \[=8,820\times \,\frac{21}{20}\,=\text{Rs}\,9,261\] \[\therefore \]  Interest for the 3rd year = A ? P = Rs 9, 261 ? Rs 8,820 = Rs 441 Hence, the interest for the 3rd year is Rs 441.