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2 years, 2 months ago
2 years, 2 months ago
Hi Varshith Yelleti,
(1+0.075)^10 = 1 + 10(0.075) + 45(0.075)^2 +..... = 1 + 0.75 + 0.25 = 2
In this binomial expansion, we consider only first three terms. As the remaining terms are approximately zero, we will neglect them and consider first three terms to calculate faster. Sometimes we only consider first two terms depending on the value of third term.
15000((1.075)^10) = 15000(2) = 30000
Hope this helps!
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