Three years ago, Beeru purchased a buffalo from Surjeet for Rs 11000. What payment will discharge his debt now. The rate of interest being 10% per annum, compounded annually.

Answer

To solve the problem of how much Beeru needs to pay now to discharge his debt for the buffalo he purchased three years ago, we will use the formula for compound interest. The formula to calculate the amount \( A \) after \( n \) years with principal \( P \), rate \( r \), and time \( n \) is:

\[ A = P \left(1 + \frac{r}{100}\right)^n \]

### Step-by-Step Solution:

1. **Identify the values:**
- Principal \( P = 11000 \) (the amount Beeru borrowed)
- Rate \( r = 10\% \) (the interest rate per annum)
- Time \( n = 3 \) years (the time period for which the interest is calculated)

2. **Substitute the values into the formula:**
\[ A = 11000 \left(1 + \frac{10}{100}\right)^3 \]

3. **Calculate \( 1 + \frac{10}{100} \):**
\[ 1 + \frac{10}{100} = 1 + 0.10 = 1.10 \]

4. **Raise \( 1.10 \) to the power of \( 3 \):**
\[ (1.10)^3 = 1.10 \times 1.10 \times 1.10 \]
First, calculate \( 1.10 \times 1.10 = 1.21 \).
Then, calculate \( 1.21 \times 1.10 = 1.331 \).

5. **Multiply the result by the principal:**
\[ A = 11000 \times 1.331 = 14641 \]

6. **Final Amount:**
The amount Beeru needs to pay now to discharge his debt is \( A = 14641 \).

### Final Answer:
Beeru will need to pay Rs 14,641 now to discharge his debt.

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