Question

Harvinder deposited $Rs.40,000$ in a post officer for a period of three years. The post officer credits the interest yearly in his account at $7\%$ per annum compounded annually. Find the balance in his account after three years.

Answer 1

Given that,

Principle amount $=Rs.40,000$, Rate of compound interest $=7\%$, Time $t=3$ years

Total amount after three years $=p+p{(1+\frac{r}{100})}^t$

$=40,000+40,000{(1+\frac{7}{100})}^3$

$=40,000+40,000{(1+0.7)}^3$

$=40,000+40,000\times 1.225$

$=Rs.89001.72$

Hence, this is the required solution.