Q4 of 16 Page 107

At the start of a year there were Rs. 24,000 in a savings account. After adding Rs. 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?

Balance at the start of the year = Rs. 24000


Amount added = Rs. 56,000


Total = Rs. 80,000


Interest rate = 7.5% per annum


Period of accumulation = 3yr


Formula,


A =


Amount of maturity after 3 year,


= Rs.


= Rs. 80,000×1.075×1.075×1.075


= Rs. 99,383.75


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