Question

A man saves Rs. 3,000 every year and invests it at the end of the year at 10% compound interest. Calculate the total amount of his savings at the end of the third year from the day he starts saving.

Answer 1

Given, Principal amount = $\text{Rs.}3,000$ , Rate = $10\%$ and Time = $3$ years

The formula for Compound Interest is

$A=P{(1+\frac{R}{100})}^T$

$=3000{(1+\frac{10}{100})}^3$

$=3000\times \frac{110}{100}\times \frac{110}{100}\times \frac{110}{100}$

$=\text{Rs.}3993$