Question

Calculate the future value of rs 100000 if you deposit in the bank @ 6% per annum rate of interest for 5 years

Answer 1

provided that it is by simple interest

Answer 2

The total future value Rs. 130000

Solution:

The total value P = 100000  

Time t = 5 years

Interest rate R = $6\%$  

So, the interest after 5 yrs is

$Simple Interest \ = \ \frac{P R T}{100} \\\\\Rightarrow \frac{100000 \times 6 \times 5}{100}=30000$

Hence, the total future value = (100000+30000) = 130000