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?
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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
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
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