Question

Highlander deposited rupees 40000 in a post office of 3 year the post office created Intel interest yearly in his account at 7% per annum compounded annually find his balance is account after 3

Answer 1

Principal = 40000

Time = 3 years

Rate of interest = 7%

To find out the amount he received after 3 years , we have to find it by formulae of compound interest

A = P ( 1+ r/100)ⁿ

A = 40000 ( 1+ 7 /100)³

A = 40000 ( 107 /100)³

A = 40000 ( 1.225)

A = 40000 ₓ 1.225

A = 49001

So after 3 years he receive 49001 . which include Principal and Interest.