Question:
What will 15625 amount to in 3 years after its deposit in a bank which pays annual interest at the rate of $8 \%$ per annum, compounded annually?
Solution:
To find: The amount after three years
Given: (i) Principal - 15625
(ii) Time $-3$ years
(iii) Rate $-8 \%$ per annum
Formula used: $A=P\left(1+\frac{r}{100}\right)^{t}$
$A=15625\left(1+\frac{8}{100}\right)^{3}$
$A=15625\left(\frac{108}{100}\right)^{3}$
A = 19683
Ans) 19683