Question

If you deposit Rs. 1,00,000 today in a bank which pays
10% interest compounded annually, how much will the
deposit grow to after 10 years ? (FVIF10%,10 YEARS =
2.5​

Answer 1

Answer:

I am not really good at solving sums

Answer 2

The deposit grow after 10 years will be ₹259,374.

Explanation:

Given: Deposit = ₹100000

           Rate of interest = 10%

Find: Amount of deposit after 10 years.

Method: Compound Interest.

Solution:

• Compound interest is the type of interest paid by the bank or other financial institution in which the interest of every other year gets cumulated to the principal part.
• The Amount of deposit will be calculated by the compound interest formula.
• Compound interest = Amount = principal(1 + R/100)'t
• Amount = 100000(1 + 10/100)'10 = ₹259,374.
• So, the amount received after the 10 years will be ₹259,374.