Question

Calculate the compound interest for the second year on Rs. 15000 invested for 5 years at 6% per annum.

Answer 1

Principal (P) = Rs.15000

Rate (R) = 6% p.a.

Period (n) = 5 years

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

`=(15000xx6xx1)/100`

= Rs.900

∴ Amount for the first year = Rs.15000 + 900

= Rs.15900

Principal for the second year= Rs.15900

Interest for the second year =`(15900xx6xx1)/100`

= 159 x 6

= Rs. 954