Question

A man saves 500 Rupees at the end of each year and let the money at 10% compound interest how much will it become at the end of 4 years

Answer 1

R = Savings at the end of each year = 500

i = Compound interest rate = 10 %

n = Duration = 4 years

S= Total Savings =

S = R(1+i)^n

= 500 ( 1 + 10/100)^4

= 500 ( 1 + 0.1)^4

= 500 (1.1)^4

= 500 (1.4641)

= 732.05 = Total Savings at the end of 4 years