₹10,000 is put into a sinking fund at the end of every year for 3 years, at 5% a year. How much is in the fund after the third deposit? (Take $(1.05)^{3} = 1.157625$.)

Explanation

1. 01

   $A = R \times \frac{(1 + i)^{n} - 1}{i} = 10{,}000 \times \frac{0.157625}{0.05}$.

2. 02

   $= 10{,}000 \times 3.1525 = 31{,}525$ rupees.