Question

If Capital of Rs 1.0 Cr is kept in Fixed Deposit with interest rate of 10% per annum compounded annually. What is the value of F.D after 10 Years *​

Answer 1

The Amount of FD would be ₹2,59,37,424.60

1) This is a  problem of compound interest compounded annually.

2) Principal amount is Rs 1 crore or Rs 10^7

3) Interest Rate is 10% per annum

4) Time duration is 10 years.

5) Compounded amount after the time period will be

A = $P(1+ \frac{R}{100} )^T$

6) Substituting the values : A = $10^7 (1+\frac{10}{100})^{10$

7) Calculating gives the Amount of FD to be ₹2,59,37,424.60 or Rs 2 crore fifty nine lakhs thirty seven thousand four hundred and twenty four  and 60 paise.