Question

A man saves 3000$ 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.

Pls solve and post answer with full working and side comments explaining every step.​

Answer 1

Given :

Principle : $3000

Rate of interest : 10%

Time : 3 years

To find :

The amount received at end of 3 years.

Solution :

We can find the amount by it's formula.

$\sf \dashrightarrow Amount = Principle \bigg( 1 + \dfrac{Rate}{100} \bigg)^{Time}$

$\sf \dashrightarrow 3000 \bigg( 1 + \dfrac{10}{100} \bigg)^{3}$

$\sf \dashrightarrow 3000 \bigg( \dfrac{100 + 10}{100}^{3}\bigg)$

$\sf \dashrightarrow 3000 \bigg( \dfrac{110}{100} \bigg)^{3}$

$\sf \dashrightarrow 3000 \bigg( \dfrac{11}{10} \bigg)^{3}$

$\sf \dashrightarrow 3000 \bigg( \dfrac{11^3}{10^3} \bigg)$

$\sf \dashrightarrow 3000 \bigg( \dfrac{1331}{1000} \bigg)$

$\sf \dashrightarrow \dfrac{3000 \times 1331}{1000} = \dfrac{3993000}{1000}$

$\sf \dashrightarrow \cancel \dfrac{3993000}{1000} = 3993$

Hence, the amount to be received by the man at end of three years is $3993.