Question

the sum of money put at 11% per annum amount to rupees 4491 in 2 years 3 month what will it amount to in 3 years at the same rate

Answer 1

We first state the compound interest accumulation formula :

Accumulation = P(1 + i)ⁿ

P = principle amount

n = Time in years

i = interest rate

In this question we will first need to get the principle.

Calculations :

Let the principle amount be p :

4491 = p(1.11)^2.25

1.26467P = 4491

P = 4491/1.26467

P = 3551.12

Amount in three years

P = 3551.12

i = 11%

n = 3 years

Amount = 3551.12 (1.11)³

3551.12 × 1.367631 = 4856.62

Rs 4856.62