Question

Manoj deposited a sum of Rs 64000 in a post office for 3 years, compounded annually at $7\frac{1}{2}\%$ per annum. What amount will he get on maturity ?

Answer 1

$\text{Principal (p) = Rs. 64000}\text{Rate (r) = 7}\frac{1}{2}=\frac{15}{2}\%\text{Period (t) = 3 years}\therefore \text{Interest for the first year}=\frac{prt}{100}=Rs.\frac{64000\times 15\times 1}{100\times 2}=Rs.4800\text{Amount at the end of first year = Rs. 64000}+Rs.4800=Rs.68800\text{Principal to the second year = Rs. 68800}\text{Interest for the second year = Rs}\frac{68800\times 15\times 1}{100\times 2}=Rs.5160\text{Amount at the end of 2nd year = Rs 68800 + 5160 = Rs 73960}\text{Principal for the third year}=\frac{73960\times 15\times 1}{100\times 2}=Rs.5547\therefore \text{Amount at the end of 3rd year = Rs. 73960 + Rs. 5547}=Rs.79507Ans.$