What will rs 500 amounts to in 10 years

Asked by admin @ 16/08/2021 in Math viewed by 301 People

Question 31 What will Rs 500 amounts to in 10 years after its deposit in a bank which pays annual interest rate of 10% compounded annually?

Class X1 - Maths -Sequences and Series Page 193

Answered by admin @ 16/08/2021

Let A is the amount ,
P is the principal,
r is the rate of interest ,
and t is the time period in year.
now,
$A=P(1+\frac{r}{100})^t\\\\=500[1+\frac{10}{100}]^{10}\\\\=500[1+0.1]^{10}\\\\=500(1.1)^{10}$

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