Question

50000 amount after 5 yrs with compound intrest of 8.5 %

Answer 1

It is very simple question

Here is your answer

Total amount = 50000

Time = 5 years

Rate = 8.5 %

It means that 1st year intrest is 8.5 of 50000

Then

50000 × 8.5 ÷ 100 = 4250

1st year intrest is 4250 and total ammount is 50000

Now 2nd year intrest is equal to 8.5 % of 54250

Then

54250 × 8.5 ÷ 100 = 4611.25

2nd year intrest is 4611.25 and total ammount is 58861. 25

Now 3rd year intrest is equal to 8.5 % of 58861.25

Then

58861.25 × 8.5 ÷ 100 = 5,003.20625

3rd year intrest is 5,003.20625 and total ammount is 63,864.45625

Now 4th year intrest is equal to 8.5 % of 63,864.45625

then

63,864.45625× 8.5 ÷ 100 = 5,428.47878125


4th year intrest is 5,428.47878125