Compound Amount Calculation
This problem requires calculating the future value of an investment using the compound interest formula.
Compound Interest Formula
The formula for calculating the final amount (A) with compound interest is:
$ A = P \left(1 + \frac{r}{n}\right)^{nt} $
Where:
- $P$ = Principal amount (initial investment) = Rs. 4500
- $r$ = Annual interest rate = 10% or 0.10
- $n$ = Number of times interest is compounded per year = 1 (annually)
- $t$ = Number of years = 5
Applying the Formula
Substitute the given values into the formula:
$ A = 4500 \left(1 + \frac{0.10}{1}\right)^{1 \times 5} $
Simplify the expression:
$ A = 4500 (1 + 0.10)^5 $
$ A = 4500 (1.10)^5 $
Calculation Steps
- Calculate $(1.10)^5$: $1.10^5 = 1.61051$
- Multiply the result by the principal amount: $A = 4500 \times 1.61051$
- Calculate the final amount: $A = 7247.295$
Final Amount
Rounding the result to two decimal places, the amount to be paid at the end of 5 years is Rs. 7,247.30.
Similar Questions
- What is the compound interest on a sum of Rs. 12,500 at 15% p.a. in 2 years, if the interest is compounded 8-monthly?
- A certain amount increases to five times its initial value after 10 years of compounding interest. How many years will it take for it to grow to twenty-five times its original amount?
- A vendor lends 74,000 rupees at a rate of 12% compound interest per annum, compounded annually. Find the interest for the 3rd year.
- A sum of money invested at compound interest amounts to twice itself in 4 years. In how many years will it become 8 times itself?
- What is the compound interest on Rs. 8000 for 2 year at 10% per annum?
- The compound interest on a certain sum for 3 years at 20% per annum is ₹864. Find the simple interest on the same sum at the same rate and period.
- What will be the compound interest on a sum of Rs. 25,000 after 3 years at the rate of 10% p.a.?
A sum of money becomes three times itself in 3 years at compound interest.
What is the rate of interest?
- If the amount is Rs. 600 and the Principal is Rs. 450, which is compounded yearly for 1 year, calculate the rate of interest.
- A certain sum amounts to Rs. $1,600$ in two years and to Rs. $2,000$ in three years at compound interest when compounded annually. Find the rate of interest.
Important Questions from Compound Interest
The certain sum amounts to Rs. 9,982.50 in \(2\frac{1}{2}\) years at 12% p.a., interest compounded 10-monthly. The sum (in Rs.) is:
The difference between the simple interest and the compound interest compounded annually on a certain sum of money for 2 years at a rate of 8% per annum is Rs. 16.80. Find the principle amount.
If a sum of ₹ 2000 is lent at 10% p.a. compound interest, what is the interest for the second year?
A sum becomes 5 times of itself in 3 years. at compound interest (interest is compounded annually). In how many years. will the sum becomes 125 times of itself?
If the compound interest on a certain sum of money for two years at 9% p.a. is Rs. 3,762, then the sum is:
