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

$$\begin{gathered} \mathrm{Principal}\mathrm{for}\mathrm{the}\mathrm{first}\mathrm{year}=\mathrm{Rs}.64000 \\ \mathrm{Interest}\mathrm{for}\mathrm{the}\mathrm{first}\mathrm{year}=\mathrm{Rs}.\left(\frac{64000\times 15\times 1}{100\times 2}\right)=\mathrm{Rs}.4800 \\ \mathrm{Now},\mathrm{amount}\mathrm{at}\mathrm{the}\mathrm{end}\mathrm{of}\mathrm{the}\mathrm{first}\mathrm{year}=\mathrm{Rs}.(64000+4800)=\mathrm{Rs}.68800 \\ \mathrm{Principal}\mathrm{for}\mathrm{the}\mathrm{second}\mathrm{year}=\mathrm{Rs}.68800 \\ \mathrm{Interest}\mathrm{for}\mathrm{the}\mathrm{second}\mathrm{year}=\mathrm{Rs}.\left(\frac{68800\times 15\times 1}{100\times 2}\right)=\mathrm{Rs}.5160 \\ \mathrm{Now},\mathrm{amount}\mathrm{at}\mathrm{the}\mathrm{end}\mathrm{of}\mathrm{the}\mathrm{second}\mathrm{year}=\mathrm{Rs}.(68800+5160)=\mathrm{Rs}.73960 \\ \mathrm{Principal}\mathrm{for}\mathrm{the}\mathrm{third}\mathrm{year}=\mathrm{Rs}.73960 \\ \mathrm{Interest}\mathrm{for}\mathrm{the}\mathrm{third}\mathrm{year}=\mathrm{Rs}.\left(\frac{73960\times 15\times 1}{100\times 2}\right)=\mathrm{Rs}.5547 \\ \mathrm{Now},\mathrm{amount}\mathrm{at}\mathrm{the}\mathrm{end}\mathrm{of}\mathrm{the}\mathrm{third}\mathrm{year}=\mathrm{Rs}.(73960+5547)=\mathrm{Rs}.79507 \\ \therefore \mathrm{Manoj}\mathrm{will}\mathrm{get}\mathrm{an}\mathrm{amount}\mathrm{of}\mathrm{Rs}.79507\mathrm{after}3\mathrm{years}. \end{gathered}$$