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 third year

Answer 1

Given: a man saves ₹3000 every year and invests it at the end of the year at 10% compound interest

To find: the total amount of his savings at the end of third year

Solution:

1st year:

• The man saves ₹3000 at the end of the first year. This amount will be invested at a rate of 10% p.a. for compound interest.

2nd year:

• Sum = ₹3000
• Rate of compound interest = 10% p.a.
• Amount after the 1st year is
• = ₹3000 × (1 + 10/100)
• = ₹3000 × 110/100
• = ₹3300
• Now ₹3000 is added with the above amount and thus total savings is
• = ₹(3300 + 3000)
• = ₹6300

3rd year:

• Sum = ₹6300
• Rate of compound interest = 10% p.a.
• Amount after the 2nd year is
• = ₹6300 × (1 + 10/100)
• = ₹6300 × 110/100
• = ₹6930
• Now ₹3000 is added with the above amount and thus total savings is
• = ₹(6930 + 3000)
• = ₹9930

Answer: the total amount of his savings at the end of the third year is ₹9930.

Answer 2

Answer:

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