Problem Solving

Plz elaborate n suggest an easy method..correct ANS: Boxed(E)..

Compound interest formula is

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

where A = Amount
P is principle in this case its 1000
r rate of interest in decimal (so 5.6% is 0.056)
n - number of years the interst is compounded - in this case its annually so n =1
t is time in this case 3

Manasi_sh, I agree with ri2007! But for me, its very tough to remember the formula at all. So what I would do here is - to solve the prob step-by-step. Like -
After 1st yr : Total amt = 1000 * 105.6/100
After 2nd yr : Total amt = 1000 * 105.6/100 * 105.6/100
After 3rd yr : Total amt = 1000 * 105.6/100 * 105.6/100 * 105.6/100
= 1000 * (1.056)^3

105.6/100 menas 1= 5.6/100..rt?..wel yeah ur method is easier..thnks

Yop Manashi!

105.6/100 menas 1= 5.6/100..rt?..wel yeah ur method is easier..thnks

105.6/100 means 1 + 5.6 / 100. By the way, welcome !