How much will a principal of ₹5000 invested on compound interest (compounded annually) amount to, in three years at a rate of 50% per annum?

₹16,875

The Formula that we used here is -

Amount = P$(1 \;+\; \frac{R}{100})^t$

= 5000 [ 1 + \(\frac{50}{100}\)]³

 = 5000 [ 1 + \(\frac{1}{2}\)]³

= 5000 [  \(\frac{3}{2}\)]³

 = [ 1 + \(\frac{R}{100}\) ]³

= 5000 × \(\frac{3}{2}\)× \(\frac{3}{2}\)× \(\frac{3}{2}\)

= 16875