Anagha borrowed Rs.$ 70,000$ from her friend at the rate of $3.5\%$ p.a.compounded yearly. She returned the amount after three years. so calculate interest of first year and second year .

First calculate the interest for the initial year using the simple interest formula, which is (70000 * 3.5 * 1) / 100, equaling 2450. The principal for the second year becomes 72450. The simple interest on this new principal is (72450 * 3.5 * 1) / 100, which results in 2535.75.

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