Question

What will a deposit of Rs. $4,500$ at $10\%$ in a savings account compounded yearly interest be worth if left in the bank for $9$ years?

• A. $2110.77$
• B. $4110.77$
• C. $6110.77$
• D. $8110.77$

Answer 1

Answer: (C)

$6110.77$

Given, $P=$ Rs. $4500$, $r=10\%$, $n=1$, $t=9$ years
$A=$ $P(1+0.1{)}^{1.9}$
$A=4500\times 2.357948$
$A=$ Rs. $10610.77$
Amount $=$ Principal $+$ Interest
Interest $=A-P$
$=10610.77-4500$
$=$ Rs. $6110.77$