Question

how much money will amount to Rs 560 in 3 years at 4% per annum

Answer 1

Let us say the initial amount is x and at p% per annum after one year the value y1 will become

y1 = x +x*(p/100) =x(1+p/100)

after 2 years

y2 = (x(1+p/100))+(x(1+p/100))*(p/100)= x(1+p/100)^2

after n years

yn =x(1+p/100)^n

so here y3 =560, n=3, p=4

560 = x(1+0.04) ^3

Solving for x we get x =497.83 Rupees

Answer 2

A=560 T=3 R=4%. A=P(1+RT/100). 560=P(1+12/100). 560×100/112=P. P=500