Three years ago, Beeru purchased a buffalo from Surjeet for ₹ 11000.

1.	Three years ago, Beeru purchased a buffalo from Surjeet for ₹ 11000. What paymentWill discharge his debt now, the rate of interest being 10% per annum, compounded annually?
Answer» Given: Present value= ₹ 11000 Interest rate= 10% per annum Time=3 years To find the amount we have the formula, Amount (A) = P (1+(R/100))ⁿ Where P is present value, r is rate of interest, n is time in years. Now substituting the values in above formula we get, ∴ A = 11000 (1 + 10/100)³ ⇒ A = 11000 (11/10)³ ⇒ A = 11000 (1331/1000) ⇒ A = 11 (1331) ⇒ A = ₹ 14614 ∴ Beeru has to pay ₹ 14614

Three years ago, Beeru purchased a buffalo from Surjeet for ₹ 11000. What paymentWill discharge his debt now, the rate of interest being 10% per annum, compounded annually?

Answer»

Given:

Present value= ₹ 11000

Interest rate= 10% per annum

Time=3 years

To find the amount we have the formula,

Amount (A) = P (1+(R/100))ⁿ

Where P is present value, r is rate of interest, n is time in years.

Now substituting the values in above formula we get,

∴ A = 11000 (1 + 10/100)³

⇒ A = 11000 (11/10)³

⇒ A = 11000 (1331/1000)

⇒ A = 11 (1331)

⇒ A = ₹ 14614

∴ Beeru has to pay ₹ 14614