Question

Rukmani deposits ₹94,000 for 3 years at 4.25% per annum compounded semi-annually. Calculate the future value accumulated at the end of 3 years.

Answer 1

Rukmani accumulated ₹1,06,640.03 at the end of 3 years

Step-by-step explanation:

Rukmani deposited 94,000 for 3 years at 4.25% per annum compounded semiannually.

$A=P(1+\frac{r}{n}) ^{nt}$

A = future value

P = principal amount = ₹94,000

r = rate of interest 4.25% = 0.0425

n = compounding periods = 2

t = time in years = 3

$=94,000(1+\frac{0.0425}{2} )^{(2\times 3)}$

$=94,000(1+0.02125)^6$

= 94,000 (1.02125)⁶

= 94,000 × 1.3446844

= ₹106,640.03

Rukmani accumulated ₹1,06,640.03 at the end of 3 years.

Learn more about compound interest : https://brainly.in/question/639681