Manoj deposited a sum of 64000 in a post office for 3yrs,compound annually at 7 1/2per annum.what amount will he get on maturity?
Plz give answer
mkp
To calculate the maturity amount using compound interest, we can use the formula:
A = P(1 + r/n)^(nt)
Where:
A = Amount on maturity
P = Principal amount (initial deposit) = $64,000
r = Annual interest rate (in decimal form) = 7.5% = 0.075
n = Number of times interest is compounded per year (compounded annually in this case) = 1
t = Number of years = 3
Let's plug in these values into the formula and calculate the maturity amount:
A = 64,000(1 + 0.075/1)^(1*3)
= 64,000(1 + 0.075)^(3)
= 64,000(1.075)^(3)
= 64,000(1.225043)
≈ $78,402.74
Therefore, Manoj will get approximately $78,402.74 on maturity.