Question

Harvinder deposit Rs 40000 in a post office for a period of 3 years the post office credit interest yearly in his account at 7% per annum compounded annually find the balance in his account after 3 years

Answer 1

Principal Amount = Rs 40,000

Time = 3 years

Interest Rate = 7% per annum compounded annually

Find the amount of money in the bank after 3 years:

Amount = P(1 + r)ⁿ

Amount = 40000(1 + 0.07)³

Amount = 40000(1.07)³

Amount = Rs 49,001.72

Answer: The balance in his account after 3 years will be Rs 49,001.72