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A Sum of Rs. 65000 is Invested for 3 Years at 8 % P.A. Compound Interest.

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Question

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.

Sum
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Solution

`"C"_1 = ("P" xx "R" xx "T")/100`

`= (65000 xx 8 xx 1)/100` = Rs. 5200

`P_1 = 5200 + 65000`

= Rs 70200

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Concept of Compound Interest - Compound Interest as a Repeated Simple Interest Computation with a Growing Principal
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