Question

assume you invest in a deposit of rs.10000 at the end of each year for the next three years in an account paying 12% per annum compounded annually. how much will you have in the account at the end of the third year​

Answer 1

Explanation:

we Have A = 10000, I = 12/100= 0.12 N = 3 years

we use Future value formula,

FV= a× [(1+i)n-1/i]

= 10,000 [ ( 1+0.12)3 - 1 /0.12]

= 10,000[(1.12)3 - 1 /0.12]

=10000[1.4049-1/0.12]

=10000[3.3744]

=33,744

Future value is 33,744