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A sum of Rs. 4500 is lent at compound interest. If the rate of interest is 10% per annum (interest is compounded annually), then what will be the amount after 3 years?

ARs. 5989.5

BRs. 5689.5

CRs. 5686.5

DRs. 5889.5

Answer:

A. Rs. 5989.5

Read Explanation:

Solution:

Given:

Amount of money lent = 4500

Rate of Interest = 10%

Number of Years = 3

Formula Used:

A=P(1+(rn))ntA = P(1 + (\frac{r}{n}))^{nt}

Where, A → Final amount

P → Initial Principal amount

r → Rate of Interest

n → number of times interest applied per time period

t → number of time period elapsed

Calculation:

A=4500×(1+(10100))(1×3)A = 4500\times{(1 + (\frac{10}{100}))}^{(1\times{3})}

A=4500×(1.1)3⇒ A = 4500\times{(1.1)}^3

⇒ A = Rs. 5989.5


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