Question

0. A man saves ₹3,000 every year and invests
it at the end of the year at 10% compound
interest. Calculate the total amount of his
savings at the end of the third year,​

Answer 1

Step-by-step explanation:

For the first year, on interest being compounded at R=10 %, we have

Amount=P(1+

100

R

)

N

=3,000×(1+

100

10

)

1

=3,000×1.1=Rs3,300

For the second year, P=Rs 3,300+Rs 3000=Rs 6,300 on interest being compounded at R=10 %, we have

Amount=P(1+

100

R

)

N

=6,300×(1+

100

10

)

1

=6,300×1.1=Rs6,930

At the end of third year, P=Rs 6,930+Rs 3000=Rs 9,930