At the start of a year there were ₹ 24,000 in a savings account. After adding ₹ 56,000 to this the entire amount was invested in the bankAt the start

Question

At the start of a year there were ₹ 24,000 in a savings account. After adding ₹ 56,000 to this the entire amount was invested in the bank at 7.5% compound interest. What will be the total amount after 3 years ?

Answer 1

Here, P = 24000 + 56000 

= ₹ 80000 

R = 7.5%, n = 3 years T

Total amount after 3 years

= 80000 (1 + 0.075)³ 

= 80000 (1.075)³ 

= 80000 x 1.242297 

= 99383.76 

∴ The total amount after 3 years is ₹ 99383.76.