8. Saurabh invests 48,000 for 7 years at 10%per annum compound interest. Calculate :(i) the interest for the first year.(ii) the amount at the end of the second year.(iii) the interest for the third year.

8. Saurabh invests 48,000 for 7 years at 10%per annum compound interes

1.	8. Saurabh invests 48,000 for 7 years at 10%per annum compound interest. Calculate :(i) the interest for the first year.(ii) the amount at the end of the second year.(iii) the interest for the third year.
Answer» Compounding is once at the end of the year.So the interest for n year is P (1+r/100)^n - P, where P = principle, r = rate of interest and n = number of years..Given P= 48000. r = 7 and n = 1. Substituting these values in the formula, we get:Interest for the first year = 48000(1+7/100)^1 - 48000 = 480*7 = 3360 rupees.