Question

A man saves ₹5000 every year and invests it at the end of the year at 10%pa compound interest. Calculate the total amount of his savings at the end of their third year and compound interest earned in three years.

Answer 1

R = Savings at the end of each year = 5000

i = Compound interest rate = 10 %

n = Duration = 3 years

S= Total Savings =

S = R(1+i)^n

= 5000 ( 1 + 10/100)^3

= 5000 ( 1 + 0.1)^3

= 5000 (1.1)^3

= 5000 (1.331)

= 6655 = Total Savings at the end of 3 years


Compound Interest = Savings at the end - Savings at the beginning

= 6655 - 5000

=1655

Answer 2

Answer:

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