What will be the maturity value of a principal amount of Rs. 50,000 at 10% annual rate of interest, compounded annually, for three years ?
1)Rs.60,500
2)Rs.62,750
3)Rs.65,000
4)Rs.66,550
5)Rs.69,350
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Let's Discuss this question in smart way..
Because you have options available so it will be quickest approach..
What after 10% increase on 100, that is 110
So what is 10% increase on 10, it is 11
So if every year your amount is 10 then next year you will get 11(with compound interest)
But according to our question amount is 50,000 and CI is compounded for 3 year so now
50,000× 11/10 × 11/10 × 11/10
50 × 11 × 11 × 11
50×1331 = 66550
If my approach helps you in any please mark it as Brainliest Answer.
Because you have options available so it will be quickest approach..
What after 10% increase on 100, that is 110
So what is 10% increase on 10, it is 11
So if every year your amount is 10 then next year you will get 11(with compound interest)
But according to our question amount is 50,000 and CI is compounded for 3 year so now
50,000× 11/10 × 11/10 × 11/10
50 × 11 × 11 × 11
50×1331 = 66550
If my approach helps you in any please mark it as Brainliest Answer.
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