a man borrows Rs 12000 at a certain rate of compound interest per annum,his loan becomes Rs12730.80 at the end of 2 years.
1)find the principal in the beginning of the second year
2)find the compound interest(to the nearest rupee)on the sum for 3 years

Dear Student

Given Principal for the first year =Rs.12000Amount after 2 years = Rs.12730.80Hence n=2 Let the rate interesr =r%We know thatA=P1+r100n12730.80=120001+r100212730.8012000=1+r10021+r1002=1.06091+r100=1.03r100=0.03r=3%(i)Interest at the end of 1st yearI=PTR100  =12000×1×3100=360Pricipal in the beginning of 2nd year=P+I                                                                   =12000+360                                                                    =Rs.12360(2)Compound interest on the sum of 3 yearsA=P+1+r1003    =120001+31003    =120001.033    =12000×1.092727    =Rs.13112.70C.I on the sum of 3 years=Rs.13112.70-12000                                                                =Rs.1112.70 
Regards

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