To calculate the value of your investment after 3 years with an annual interest rate of 6% compounded annually, you can use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:
A = the final amount
P = the principal amount (initial investment)
r = the annual interest rate (in decimal form)
n = the number of times the interest is compounded per year
t = the number of years

In this case, the principal amount (P) is ₹5,000, the annual interest rate (r) is 6% (or 0.06 in decimal form), the interest is compounded annually (n = 1), and the investment period (t) is 3 years.

Plugging in these values into the formula, we have:

A = ₹5,000(1 + 0.06/1)^(1*3)
A = ₹5,000(1 + 0.06)^3
A = ₹5,000(1.06)^3
A = ₹5,000(1.191016)
A ≈ ₹5,955.08

Therefore, the value of your investment after 3 years will be approximately ₹5,955.08.

Question

To calculate the value of your investment after 3 years with an annual interest rate of 6% compounded annually, you can use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:
A = the final amount
P = the principal amount (initial investment)
r = the annual interest rate (in decimal form)
n = the number of times the interest is compounded per year
t = the number of years

In this case, the principal amount (P) is ₹5,000, the annual interest rate (r) is 6% (or 0.06 in decimal form), the interest is compounded annually (n = 1), and the investment period (t) is 3 years.

Plugging in these values into the formula, we have:

A = ₹5,000(1 + 0.06/1)^(1*3)
A = ₹5,000(1 + 0.06)^3
A = ₹5,000(1.06)^3
A = ₹5,000(1.191016)
A ≈ ₹5,955.08

Therefore, the value of your investment after 3 years will be approximately ₹5,955.08.

Knowee AI · Accepted Answer

To calculate the value of your investment after 3 years with an annual interest rate of 6% compounded annually, you can use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:
A = the final amount
P = the principal amount (initial investment)
r = the annual interest rate (in decimal form)
n = the number of times the interest is compounded per year
t = the number of years

In this case, the principal amount (P) is ₹5,000, the annual interest rate (r) is 6% (or 0.06 in decimal form), the interest is compounded annually (n = 1), and the investment period (t) is 3 years.

Plugging in these values into the formula, we have:

A = ₹5,000(1 + 0.06/1)^(1*3)
A = ₹5,000(1 + 0.06)^3
A = ₹5,000(1.06)^3
A = ₹5,000(1.191016)
A ≈ ₹5,955.08

Therefore, the value of your investment after 3 years will be approximately ₹5,955.08.

You invest ₹5,000 in a savings account with an annual interest rate of 6%. What will be the value of your investment after 3 years if the interest is compounded annually?₹5,955.08

Question

Solution

Similar Questions

Upgrade your grade with Knowee