Question

At the beginning of each year a company sets aside $10 000 out of its profits to form a reserve fund.This is invested at 10% per annum compound interest .What will be the value of the fund after four years?

Answer 1

answer will be RS.$14641
   Solution,
Amount = principle amount(1+r/100)^no of year
             = 10000(1+10/100)^4
             = 10000*11/10*11/10*11/10*11/10
             = 1*11*11*11*11
             =14641