Question

calculate the future value of in following cases 10000 deposit in to sbi for 3 years at 8% rate if interest compound annualy​

Answer 1

Given :

Principle : ₹10000

Rate of interest : 8%

Time : 3 years

To find :

The future value (compound interest) in the account after 3 years.

Solution :

First, we should find the amount,

$\sf \dashrightarrow Amount = Principle \bigg( 1 + \dfrac{Rate}{100} \bigg)^{Time}$

$\sf \dashrightarrow 10000 \bigg( 1 + \dfrac{8}{100} \bigg)^{3}$

$\sf \dashrightarrow 10000 \bigg( 1 + \dfrac{2}{25} \bigg)^{3}$

$\sf \dashrightarrow 10000 \bigg( \dfrac{25 + 2}{25} \bigg)^{3}$

$\sf \dashrightarrow 10000 \bigg( \dfrac{27}{25} \bigg)^{3}$

$\sf \dashrightarrow 10000 \bigg( \dfrac{27^3}{25^3} \bigg)$

$\sf \dashrightarrow 10000 \bigg( \dfrac{19683}{15625} \bigg)$

$\sf \dashrightarrow 16 \bigg( \dfrac{19683}{25} \bigg)$

$\sf \dashrightarrow \dfrac{16 \times 19683}{25} = \dfrac{314928}{25}$

$\sf \dashrightarrow \cancel \dfrac{314928}{25} = 12597.12$

Now, we can find the compound interest.

Compound interest :

$\sf \dashrightarrow Amount - Principle$

$\sf \dashrightarrow 12597.12 - 10000$

$\dashrightarrow$₹$\sf 2597.12$

Hence, the future value in the account after 3 years is ₹2597.12.