Question

what sum will amount to rs. 700 at 5% per annum in 4 years if interest is compounded annually?​

Answer 1

Here, we have

principal is rs. 700

rate is 5%

time is 4 years

as we know,
amount=p(1+r/100)to power n

put the values

amount=700(1+5/100)4(AT POWER)
it will be 850 rs.

Answer 2

Step-by-step explanation

Given:-

P=700

R=5%

T=4

Interest= p( 1 +i)^t

A= 700(1 + 5/100)^4

A=700(1 + 5/100)(1+5/100)(1+5/100)(1+5/100)

A =7(1+5)(1+20)(1+20)(1+20)

A=7*6*21*21*21

A =388962

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