Question

Rs.16,000 is invested at 5% compound interest compounded per annum. Use the table, given below, to find the amount in 4 years.

Year ↓	Initial amount  (Rs.)	Interest (Rs.)	Final amount (Rs.)
1st	16,000	800	16,800
2nd	...........	...........	...........
3rd	...........	...........	...........
4th	...........	...........	...........
5th	...........	...........	...........

Answer 1

Year ↓	Initial amount  (Rs.)	Interest (Rs.)	Final amount (Rs.)
1st	16,000	800	16,800
2nd	16,800	840	17,640
3rd	17,640	882	18,522
4th	18,522	926.10	19,448.10
5th	19,448.10	972.405	20,420.505

1. P = ₹ 16,000, R = 5%

For 1^st year 

I = `(PxxRxxT)/100`

= `(16000xx5xx1)/100`

= ₹ 800

A₁ = P + I

= 16000 + 800

= 16800

2. For 2^nd year

P = ₹ 16,800, R = 5%, T = 1

I₂ = `(16800xx5xx1)/100`

I₂ = ₹ 840

A₂ = P₂ + I₂

= 16800 + 840

= 17640

3. For 3^rd year

P = 17640, R = 5%

I₃ = `(17640xx5xx1)/100`

= 882

A₃ = P₃ + I₃ 

= 17640 + 882 

= 18522

4. For 4^th year

P = 18522, R = 5%

I₄ = `(18522xx5xx1)/100`

= 9261

A₄ = 18522 + 926.1

= 19448.10

5. For 5^th year

P₅ = 19448.10, R = 5%

I₅ = `(19448.10xx5xx1)/100`

= `97240.5/100`

= 972.40

A₅ = 19448.10 + 972.40

= 20420.50

Thus, the amount in 4 years is Rs. 19448.10.