Question

what will Rs 1000 be worth after three years if it earns interest at the rate of 5% compounded annually? ​

Answer 1

Answer:

Step-by-step explanation:

Your basic future value formula is:

FV = PV (1+i) ^ n

Where:

FV = Future Value

PV = Present value = $1000

i = interest rate per period = 8/2 = 4% = 0.04

n = number of periods = 6 semi annual periods

Plug the values in and solve for FV. You will get ₹1,265.32

Answer 2

Answer:

Step-by-step explanation:

CI- P * [(1 + R/100)^T  - 1]

P= 1000   T-3 YEARS    R= 5%

CI = 1000 [(1 + 5/100)^3   -  1]

       10000 [(21/20)^3  - 1]

       1000 * 9261 - 8000 /8000

       1000 *1261/8000

        1261/8

   CI=      157.6

IN MCQ QUESTION CAN BE 157 OR 158 DEPENDING ON OPTIONS