What will be the amount to be paid at the end of 5 years on Rs. 4500 at 10% per annum compounded annually?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 7,247.3.
A = P(1 + R/100)n
= 4500(1 + 10/100)5
= 4500(1 + 1/10)5
= 4500 × (11/10)5
= 4500 × (11/10) × (11/10) × (11/10) × (11/10) × (11/10)
= 7247.295
≈ 7247.3