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

so the answer is RS 20200

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