Question

kamini deposited rs 1000 at 5% per annum at compound interest for 3 year with state bank of india.what will she get back at the expiry of the period?

Answer 1

Solution:
Principal Amount (P) = ₹1000
Rate of Interest (R) = 5% per annum
No. of years (N) = 3
Let A be the future amount.

For interest compounded yearly,
A = P (1 + R/100)^N
= 1000 (1 + 5/100)^3
= 1157.62

Hence, the future value Kamini will get is ₹1157.62/-