Question

Mr. Ram deposits Rs.10,000 for 3 Years at 10%. What is the compound value of

his deposit?​

Answer 1

thanks for free points dear

Answer 2

Answer:

₹ 10,303.01

Explanation:

Compounding refers to the appreciate the value of an asset due to the interest earned on both a principle and its interest. This concept is a direct realization of the time value of money (TMV), It is also known as compound interest. Compound interest works on both assets and liabilities.

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

Here, P = Principle amount = ₹ 10,000

n = Time = 3 years  

R = Rate = 10%

Compound Value = Amount +  Compound Interest

A =  10,000 $(1 + \frac{10}{100} ) ^{3}$

A = 10,000 ( 1 + 0.1)$^{3}$

A = 10,000 * 1.01 * 1.01 * 1.01

A = ₹ 10,303.01