Maria invested Rs 8,000 in a business. She would be paid interest at 5% per annum compounded annually. Find

(i) The amount credited against her name at the end of the second year.


(ii) The interest for the 3rd year.

(i) Here, Principal (P) = Rs. 8000, Rate of Interest (R) = 5%, Time, n = 2 years




= Rs. 8,820


(ii) Here, Principal (P) = Rs. 8000, Rate of Interest (R) = 5%, Time, n = 3 years




= Rs. 9,261


Interest for 3rd year = A – P


= Rs. 9,261 – Rs. 8,820 = Rs. 441


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