Question

A man decides to deposit Rs.20,000 at the end of each year in a bank which pays 10%
p.a. compound interest. If the installments are allowed to accumulate, what will be the
total accumulation at the end of 9 years?

Answer 1

Answer:

180000

Step-by-step explanation:

20,000(9) =18,0000

Answer 2

Answer:

the total amount accumulate at the end of 9 years will be Rs. 47158.95.

Step-by-step explanation:

Given,

Principal amount, P= Rs 20,000

interest rate, r = 10% per annum

time, t = 9 years

the total amount  at the end of 9 years can be given by

 $A\ =\ P(1\ +\ \dfrac{r}{100})^t$

      $=\ 20000(1\ +\ \dfrac{10}{100})^9$

      $=\ 20000(1\ +\ 0.1)^9$

       $=\ 20000\times (1.1)^9$

        = 47158.95

Hence, the total amount accumulate at the end of 9 years will be Rs. 47158.95.