English

A Man'S Savings Increases by Rs 50 Every Year. If He Saves Rs 500 in the First Year and Puts It at 10% Compound Interest, Find His Savings at the End of the Third Year.

Advertisements
Advertisements

Question

A man's savings increases by Rs 50 every year. If he saves Rs 500 in the first year and puts it at 10% compound interest, find his savings at the end of the third year.

Sum
Advertisements

Solution

P =Rs. 500; R = 10°/o p.a.; T = 3 years 

Interest for the 1st year

`= "Rs"  (500 xx 10 xx 1)/100` 

= Rs  50 

Principal for the second year

= Amount at the end of one year + his new savin

= Rs. 500 + Rs. 50 +Rs. 550 =Rs. 1, 100

Interest for the seoond year 

`= "Rs"  (1100 xx 10 xx 1)/100`

= Rs 110 

Compound interest for seoond year =Rs. 110 

Principal for the third year

= Amount at the end of tvvo years + his new savings

=Rs. 1, 100 +Rs. 110 +Rs. 600 =Rs. 1,810 

Interest for the third year 

`= "Rs" (1810 xx 10 xx 1)/100`

= Rs 181

Sum due at the end of third year = his savings at the end of third year

= Rs 1,810 +Rs. 181 =Rs 1,991

shaalaa.com
Concept of Compound Interest - Compound Interest as a Repeated Simple Interest Computation with a Growing Principal
  Is there an error in this question or solution?

RELATED QUESTIONS

Calculate the amount and the compound interest for the following:

Rs.20, 000 at9°/o p.a. in  `2 1/3` years


A sum of Rs. 65000 is invested for 3 years at 8 % p.a. compound interest.

Find the sum due at the end of the first year.


Alisha invested Rs 75000 for 4 years at 8 % p.a. compound interest,

Find the interest earned in the third year.


Gayatri invested Rs.25,OOO for 3 years and 6 months in a bank which paid
1O % p.a- compound interest. Calculate the amount to the nearest.Ts-10, that she
received at the end of the period.


Mohan borrowed Rs 25,000 at 10% p.a. compound interest. If he pays back Rs 7,500 every year, find the amount of loan outstanding at the beginning of the fourth year.


Pooja borrowed Rs 15,000 from Sonali at 11% p.a. compound interest. If she repays Rs 7,550 at the end of first year and Rs 6,101 at the end of second year, find the amount Pooja needs to give to Sonali at the end of third year to clear her debt.


Calculate the amount and the compound interest on:

Rs. 16,000 in 3 years, when the rates of the interest for successive years are 10%, 14% and 15% respectively.


How much will Rs. 50,000 amount to in 3 years, compounded yearly, if the rates for the successive years are 6%, 8% and 10% respectively?


6000 workers were employed to construct a river bridge in four years. At the end of first year, 20% workers were retrenched; At the end of second year 5% of the workers at that time were retrenched. However, to complete the project in time, the number of workers was increased by 15% at the end of third year. How many workers were working during the fourth year?


Mr. Kumar borrowed Rs. 15,000 for two years. The rate of interest for the two successive years are 8% and 10% respectively. If he repays Rs. 6,200 at the end of the first year, find the outstanding amount at the end of the second year.


Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×