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Alisha Invested Rs 75000 for 4 Years at 8 % P.A. Compound Interest,

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Question

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

Find the amount at the end of the second year.

Sum
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Solution

`"C"_1 = ("P" xx "R" xx "T")/100 = (75000 xx 1 xx 8)/100 = 6000`

`"P"_1 = 75000 + 6000 = 81000`

`"C"_2 = ("P" xx "R" xx "T")/100 = (81000 xx 1 xx 8)/100 = 6480`

`"P"_2 = 81000 + 6480 = 87480`

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