Manoj deposited a sum of Rs. 64000 in a post office for 3 years, compounded annually at 7
% per annum. What amount will he get on maturity?
Present value = Rs.64000
Interest rate = (15/2) % per annum
Time = 3 years
Amount (A) = P (1 + R/100)n [Where, P = Present value
R = Annual interest rate
n = Time in years]
∴ A = 64000 [1 + (15/2 × 1/100)]3
⇒ A = 64000 [1 + 3/40]3
⇒ A = 64000 (43/40)3
⇒ A = 1 × 43 × 43 × 43
⇒ A = 79507
∴ Manoj will get an amount of Rs.79507 after 3 years.
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