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Len [333]
2 years ago
15

Hiran invests 20 000 rupees in an account for 3 years at 1.5% per year compound interest.

Mathematics
1 answer:
svp [43]2 years ago
8 0

Answer:

There will be 20 914 rupees in the amount at the end of 3 years.

Step-by-step explanation:

The amount of rupes after t years in compound interest is given by:

A(t) = A(0)(1+r)^{t}

In which A(0) is the initial amount and r is the interest rate, as a decimal.

Hiran invests 20 000 rupees in an account for 3 years at 1.5% per year compound interest.

This means that A(0) = 20000, r = 0.015. So

A(t) = A(0)(1+r)^{t}

A(t) = 20000(1+0.015)^{t}

A(t) = 20000(1.015)^{t}

Work out the total amount of money in the account at the end of 3 years.

This is A(3). So

A(3) = 20000(1.015)^{3} = 20913.6

Rounding to the nearest rupee.

There will be 20 914 rupees in the amount at the end of 3 years.

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