Saurabh invests ₹ 48000 for 7 years at 10% per annum compound interest. Calculate :

(i) the interest for the first year.

(ii) the amount at the end of second year.

(iii) the interest for the third year.

(i) For first year :

P = ₹ 48000

R = 10%

T = 1 year

I = $\dfrac{P \times R \times T}{100} = \dfrac{48000 \times 10 \times 1}{100}$ = ₹ 4800.

Hence, interest for first year = ₹ 4800.

(ii) For second year :

P = ₹ 48000 + ₹ 4800 = ₹ 52800

R = 10%

T = 1 year

I = $\dfrac{P \times R \times T}{100} = \dfrac{52800 \times 10 \times 1}{100}$ = ₹ 5280.

Amount = P + I = ₹ 52800 + ₹ 5280 = ₹ 58080

Hence, amount at the end of second year = ₹ 58080.

(iii) For third year :

P = ₹ 58080

R = 10%

T = 1 year

I = $\dfrac{P \times R \times T}{100} = \dfrac{58080 \times 10 \times 1}{100}$ = ₹ 5808.

Hence, interest for third year = ₹ 5808.