Q.Find the maturity value of a Fixed Deposit of ₹50,000 for 3 years at 10% per annum, compounded yearly.

This is a direct application of the FD maturity formula with yearly compounding.

$A = 50{,}000(1.1)^3 = 50{,}000\times1.331 = 66{,}550$.

Here $P = ₹50{,}000$, $r = 10\%$ per annum, $t = 3$ years, compounded yearly.

Step 1 — Apply the FD maturity formula.

Step 2 — Evaluate. $(1.1)^3 = 1.331$, so

Step 3 — Interest earned.

A frequent slip when working with 3-year yearly-compounded problems is stopping the multiplication after only 2 years (using $(1.1)^2$ instead of $(1.1)^3$) — always double-check the exponent matches the full number of years given, especially at the syllabus's maximum span of 3 years.