Calculate the compound interest and amount due on a sum of Rs 500 for

1.	Calculate the compound interest and amount due on a sum of Rs 500 for 3 years at 10% per annum compounded annually.
Answer» Answer : CI = Rs 165.50 Amount = Rs 665.50 Given : Sum of = Rs 500 For = 3 years At = 10 % per annum To Find : the CI and amount DUE on the sum Solution : For the 1st year, Principal = Rs 500 Interest of Rs 500 at the rate of 10% = Rs $\bigg(\dfrac{5}{100}\times500\bigg)$ = Rs 50 Therefore, Amount at the end of 1st year (500 + 50) = Rs 550 i.e Principal for the 2nd year = Rs 550 Interest of Rs 550 at the rate of 10% = 10% of Rs 550 = Rs 55 [ Interest calculated on Rs 550 for the 2nd year ] Therefore, Amount at the end of 2nd year = 10% of Rs 605 = Rs 60.50 i.e Principal for the 3RD year = Rs 605 Interest of Rs 605 at the rate of 10% = 10% of Rs 605 = Rs 60.50 Therefore, Amount after 3 years = Rs (605 + 60.50) = Rs 665.50 Therefore, Required Compound interest (665.50 - 500.00) = Rs 165.50 and amount for 3 yeas = Rs 665.50.

Calculate the compound interest and amount due on a sum of Rs 500 for 3 years at 10% per annum compounded annually.

Answer»

For the 1st year, Principal = Rs 500

Interest of Rs 500 at the rate of 10%

= Rs $\bigg(\dfrac{5}{100}\times500\bigg)$ = Rs 50

Therefore, Amount at the end of 1st year (500 + 50) = Rs 550

Interest of Rs 550 at the rate of 10% = 10% of Rs 550 = Rs 55

[ Interest calculated on Rs 550 for the 2nd year ]

Therefore, Amount at the end of 2nd year = 10% of Rs 605 = Rs 60.50

Interest of Rs 605 at the rate of 10% = 10% of Rs 605 = Rs 60.50

Therefore, Amount after 3 years = Rs (605 + 60.50) = Rs 665.50

Therefore, Required Compound interest (665.50 - 500.00) = Rs 165.50 and amount for 3 yeas = Rs 665.50.