Question

ismaeel group of companies places Rs. 220,000 in a saving account paying 7% interest compounded annually.Now they want to judge how much money will be earn at end of 5 years?​

Answer 1

Answer:

Rs. 308561.38 will be the final amount at the end of 5 years.

Step-by-step explanation:

By formula,

amount=p{[1+(r/100)]^n}

p= principle r=rate n=time period

as interest is compounded annually, n=5

r=7 and p=220000

a=220000[1+0.07]^5

a=220000(1.40255)

a=308561.3808