Theory of Intelligence
11TH•Mathematics•Sequences And Series•Question 2

Overview

An investor invests Rs. 150000 at an annual compound interest rate of 6% for 8 years. Find the total amount will he get after 8 years.

[ P = 150000,\quad r = 6,\quad n = 8. ]

[ A = 150000\left(1 + \frac{6}{100}\right)^8 = 150000(1.06)^8. ]

[ (1.06)^2 = 1.1236,\quad (1.06)^4 = (1.1236)^2 = 1.262477,\quad (1.06)^8 = (1.262477)^2 \approx 1.593848. ]

[ A \approx 150000 \times 1.593848 = 239077.2. ]

Answer: Rs. 239077.20 (approx.)

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