Question

At the start of a year there were Rs. 24,000 in a savings account. After adding Rs. 56,000 to this the entire amount was invested in the bank at 7.5% compound interest. What will be the total amount after 3 years ?

Answer 1

Total investment = Rs 24,000 + Rs 56,000 = Rs 80,000
Rate of interest = 7.5%
Time = 3 years
Amount = $P{\left(1+\frac{R}{100}\right)}^n$
$$\begin{gathered} =80,000{\left(1+\frac{7.5}{100}\right)}^3 \\ =80,000{\left(\frac{107.5}{100}\right)}^3 \\ =80,000\times 1.242 \\ =99383.75 \end{gathered}$$
Thus, the amount after 3 years will be Rs 99383.75.