A sum of Taka 50,000 is invested at 6% simple interest for the first 3 years and 8% compound interest for the next 2 years. What is the total amount after 5 years?

Question: A sum of Taka 50,000 is invested at 6% simple interest for the first 3 years and 8% compound interest for the next 2 years. What is the total amount after 5 years?

Solution:
Given,
Tk. 50,000 is invested.
6% simple interest for the first 3 years.
8% compound interest for the next 2 years.

Simple Interest, I = Pnr
= 50000 × 3 × (6/100)
= 9000

New Principal = 50,000 + 9,000 = 59,000

Compound Principal = P × (1 + r)ⁿ
= 59000 × (1 + (8/100))²
= 59000 × (1.08)²
= 68,817.60