Question

Find the amount if Rs 20000 is invested at 10% p.a. for 3 years.

• A. Rs.33111
• B. Rs.85500
• C. Rs.26620
• D. Rs.66699

Answer 1

Answer: (C)

Amount$A=P{[1+\frac{R}{100}]}^n$

Given:$P=Rs.20,000,R=10\%$ and $n=3$ years

$\Rightarrow A=20,000{[1+\frac{10}{100}]}^3$

$\Rightarrow A=20,000{[1+\frac{1}{10}]}^3$

$\Rightarrow A=20,000{\left[\frac{10+1}{10}\right]}^3$

$\Rightarrow A=20,000{\left[\frac{11}{10}\right]}^3$

$\Rightarrow A=20,000\times \frac{11}{10}\times \frac{11}{10}\times \frac{11}{10}$

$\Rightarrow A=20,\times 11\times 11\times 11=Rs.26,620$

$\therefore$Amount is $Rs.26,620$