Question

A wholesale trader sold Rs 20 crore worth of cloth this year. If the sale of cloth increases at a rate of 2% per year, how much will the sale be after three years?

Answer 1

Sale of the wholesaler this year, P = Rs 20,00,00,000
Rate (R) = 2% p.a.
Number of years (N) = 3 years
Amount $=\mathrm{P}{\left(1+\frac{\mathrm{R}}{100}\right)}^{\mathrm{N}}$
$$\begin{gathered} =200000000{\left(1+\frac{2}{100}\right)}^3 \\ =200000000{\left(1+\frac{1}{50}\right)}^3 \\ =200000000{\left(\frac{51}{50}\right)}^3 \\ =200000000\times \frac{51}{50}\times \frac{51}{50}\times \frac{51}{50} \\ =\mathrm{Rs}212241600 \end{gathered}$$

∴ The sale of the wholesaler will attain a value of Rs 21, 22, 41,600 after 3 years.