Question

annually?
11. What sum of money will amount to 93170 in 3 years at 10% per annum, compounded
annually?
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Answer 1

In case of compound interest,

$A = P(1 + r )^{n} \\ = > 93170 = P(1 + 10\%)^{3} \\ = > 93170 = P(1 + \frac{10}{100} )^{3} \\ = > 93170 = P( \frac{11^{3} }{ {10}^{3} }) \\ = > P = \frac{93170 \times 1000}{11 \times 11 \times 11} \\ = > P = 70000$

Compound interest is nothing but percentage increase in a principal amount over a period of time.

Hope, this helps...