Question

Rahul saves an amount of $800$ every year and then lent that amount at an interest of $10$ percent compounded annually. Find the amount after $3$ years.

Answer 1

Given:

$P=$ Rs $16000$

$R=12.5\%$p.a

$n=3$ years

We know that amount $A$ at the end of $n$ years at the rate $R\%$per annum when the interest is compounded annually is given by

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

$A=16000{(1+\frac{12.5}{100})}^3$

$A=16000{\left(1.125\right)}^3$

$\therefore A=22781.25$

Thus, the required amount is Rs$22781.25$