A man invested ₹46875 at 4% per annum compound interest for 3 years. Calculate :

(i) the interest for the first year.

(ii) the amount standing to his credit at the end of the second year.

(iii) the interest for the third year.

(i) Principal for first year = ₹46875.

Interest for the first year = ₹ $\dfrac{46875 \times 4 \times 1}{100} = \dfrac{187500}{100}$ = ₹1875.

Hence, the interest for the first year = ₹1875.

(ii) Amount after one year = ₹46875 + ₹1875 = ₹48750.

Principal for the second year = ₹48750.

Interest for the second year = ₹ $\dfrac{48750 \times 4 \times 1}{100} = \dfrac{195000}{100}$ = ₹1950.

Amount after 2 years = ₹48750 + ₹1950 = ₹50700.

Hence, the amount standing to his credit at the end of the second year is ₹50700.

(iii) Principal for third year = ₹50700.

Interest for the third year = ₹ $\dfrac{50700 \times 4 \times 1}{100} = \dfrac{202800}{100}$ = ₹2028.

Hence, the interest for the third year = ₹2028.