Email
logo

Ask Questions, Get Answers

X
 
Questions  >>  CBSE XI  >>  Math  >>  Sequences and Series
Answer
Comment
Share
Q)

What will Rs. 500 amounts to in $10$ years after its deposit in a bank which pays annual interest of $10%$ compounded annually?

1 Answer

Comment
A)
Given: the initial deposit $=Rs.500$
The interest rate $=10$%
After one year the amount $=500+\large\frac{10}{100}$$\times 500$
$\qquad\qquad\:=500\big(1+\large\frac{1}{10}$$\big)=500\times 1.1$
After two years the amount is $500\times 1.1+\large\frac{10}{100}$$\times (500\times 1.1)$
$\qquad\qquad\:=500\times1.1\big(1+\large\frac{10}{100}\big)$
$\qquad\qquad\:=500\times1.1\times 1.1$
$\qquad\qquad\:=500\times(1.1)^2$
$\therefore$ The amount forms the series $500 (1.1),\:\:500 (1.1)^2,\:\:500(1.1)^3.........$
in the subsequent years which forms a G.P.
$\therefore$ The amount after 10 years is $10^{th}$ term of this series
which is $500\times(1.1)^{10}$
Help Clay6 to be free
Clay6 needs your help to survive. We have roughly 7 lakh students visiting us monthly. We want to keep our services free and improve with prompt help and advanced solutions by adding more teachers and infrastructure.

A small donation from you will help us reach that goal faster. Talk to your parents, teachers and school and spread the word about clay6. You can pay online or send a cheque.

Thanks for your support.
Continue
Please choose your payment mode to continue
Home Ask Homework Questions
Your payment for is successful.
Continue
...