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    Sherryl Delavega
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    The man saves Rs 4000 each year and invests it at the end of the year at 10% annual compound interest. At the end of the first year, his investment is Rs 4000. At the end of the second year, his investment of Rs 4000 from the first year is now Rs 4400. He adds another Rs 4000 for the second year. So his total investment at the start of the third year is Rs 8400. At the end of the third year, his investment of Rs 8400 earns 10% interest, bringing his total savings to Rs 9240.

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    The man saves Rs 4000 each year and invests it at the end of the year at 10% annual compound interest. At the end of the first year, his investment is Rs 4000. At the end of the second year, his investment of Rs 4000 from the first year is now Rs 4400. He adds another Rs 4000 for the second year. So his total investment at the start of the third year is Rs 8400. At the end of the third year, his investment of Rs 8400 earns 10% interest, bringing his total savings to Rs 9240.

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    2 views3 pages

    Riticool: 2 Answers

    Uploaded by

    Sherryl Delavega
    The man saves Rs 4000 each year and invests it at the end of the year at 10% annual compound interest. At the end of the first year, his investment is Rs 4000. At the end of the second year, his investment of Rs 4000 from the first year is now Rs 4400. He adds another Rs 4000 for the second year. So his total investment at the start of the third year is Rs 8400. At the end of the third year, his investment of Rs 8400 earns 10% interest, bringing his total savings to Rs 9240.

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    riticool Student High School - 10th Grade A man saves every year Rs 4000 and invests it at the end

    of the year at 10% per annum compound interest. Calculate the total amount of his savings at the end of the third year. Posted by riticool on February 22, 2010 at 10:05 PM and tagged with compound interest, math Rate this question: Flag as inappropriate Message riticool

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    krishna-agr... Teacher Graduate School Debater, Educator Given: Amount invested = Rs. 4000 per year, at end of every year. Total duration of saving/investment = 3 years Rate of compound Interest = 10 % (assumed to be compounded annually) At the rate of saving of Rs. 1 per year: The amount invested in first year plus interest earned on it during the second year will become: 1*(1 + r/100) ... Where r = rate of interest

    = 1 + 1/10 = 1.1 At the end of second year another Rs. 1 is invested. With this total amount invested in 2 years plus interest = 1.1 + 1 = Rs. 2.1 The amount of interest plus principle at the end of third year from investment in first 2 years = (Amount at the end of second year)*(1 + r/100) = 2.1*1.1 = Rs. 2.31 At the end of third year another Rs. 1 is invested. With this total amount invested in 3 years plus interest = 2.31 + 1 = Rs. 3.31 With saving and investment of Rs. 1 per year the total amount of saving at the end of 3 years = 3.31 Therefor with saving and investment of Rs. 4000 per year the total amount of saving at the end of 3 years = 3.31*4000 = Rs. 13240
    Posted by krishna-agrawala on February 22, 2010 at 10:47 PM

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    Flag as inappropriate Message krishna-agra...

    neela Teacher Graduate School Debater, Expert The amount invested at the end of the 1st year is Rs4000.

    At the end of the 2nd years Rs 4000 brings = 4000(1+10%) = R4400. He adds another Rs 4000 at the end of the 2nd year . So his investment at the beginning of the 3rd year = R(4400+4000) =Rs 8400 which becomes Rs 8400(1+10%) along with interest at the end of 3rd year. So the savings amount invest with compound interest now is Rs8400(1+10%) =Rs8400*1.1 = Rs9240.

    Posted by neela on February 22, 2010 at 10:47 PM

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