A man invests Rs. 9600 at 10% per annum compound interest for 3 years. Calculate :**(i)** the interest for the first year.**(ii)** the amount at the end of the first year.**(iii)** the interest for the second year.**(iv)** the interest for the third year. the interest for the first year.

#### Solution

Principal (P) = Rs.9600

Rate (R) = 10% p.a.

Period (n) = 3 years

**(i)** ∴ Interest for the first year =`"PRT"/100`

`=(9600xx10xx1)/100`

= Rs.960

**(ii)** Amount at the end of first year

= P + S.I.

= Rs.9600 + 960

= Rs.10560

**(iii)** Principal for the second year = Rs.10560

Interest for the second year =`(10560xx10xx1)/100`

= Rs.1056

∴ Amount after second year = Rs.10560 + 1056 = Rs.11616

**(iv)** Principal for the third year = Rs.11616

Interest for the third year =`(11616xx10xx1)/100`

= 116.16 × 10

= Rs.1161.60