Question

a person has to pay an institution rupees 10000 at the end of 2 years and 6000 at the end of 3 years from now if he opts for paying a lump sum at the end of 3 years what will be the future value at that time at interest compounded 8% per annum​

Answer 1

Answer:

590000

this is the answer for this question

Answer 2

Step-by-step explanation:

The formula is

Formula: A = P * (1+r/t) ^ (nt)

Where

A = amount after time t

P = principal amount (your initial investment)

r = annual interest rate (divide the number by 100)

t = number of years

n = number of times the interest is compounded per year

EXAMPLE

Suppose you intend to invest Rs 1,00,000 for 10 years at an interest rate of 10 per cent and the compounding is annual.

The total amount you will receive after 10 years will be

= 1,00,000(1+0.1) ^10 = 2,59,374.25

This shows that the interest earned over 10 years is Rs 1,59,374.25