Question

Find the amount of $Rs.2400$ after $3$ years, when the interest is compounded annually at the rate of $20\%$ per annum.

Answer 1

Principal $\left(P\right)=Rs.2400$

Rate $\left(R\right)=20\%$ p.a.

Time $\left(n\right)=3$ years

$\therefore$ Amount $\left(A\right)=P{(1+\frac{R}{100})}^n$

$=Rs.2400{(1+\frac{20}{100})}^3$

$=Rs.2400\times {\left(\frac{6}{5}\right)}^3$

$=Rs.2400\times \frac{6}{5}\times \frac{6}{5}\times \frac{6}{5}$

$=Rs.4147.20$