Question

Edwin opened a savings account and deposited Rs. $3000$ as principal. The account earns $5\%$ interest, compounded annually. What is the balance after $10$ years?

• A. $4886$
• B. $4566$
• C. $4658$
• D. $5460$

Answer 1

The correct option is A $4886$

Given: $P=3000,r=5\%,n=10$ years
We know $A=P\left[{(1+\frac{r}{100})}^n\right]$
Putting all the given values in the formula, we get

$A=3000\left[{(1+\frac{5}{100})}^{10}\right]$
$A=$ Rs. $4886$