Question

If rs150000 are invested today in a saving account ,how much money would there be in the account after 5 years if the compound interest rate is 6 percent

Answer 1

Answer:

so the answer is RS 20200

Step-by-step explanation:

simple formula for calculation ( as  for compound interest you have to invest initially)

starting total investment Pₓ = Rs 150000

Interest rate r= 6 %              =        0.06  

compounds in years total K = (12 months)

for how many year you want to invest Pₙ = 5  

formula

  Pₙ =  Px  (1 +  r/k) ⁿ ˣ  ¹²

P₅  =   150000 (1 + .06/12)  ¹² ˣ⁵

  =    150000 (1.005) ⁶⁰

  = 150000 x 1.348

  =   Rs 202200