Login/Sign Up
Home » What will Rs 500 amounts to in 10 years after its deposit in a bank which pays annual interest rate of 10% compounded annually?
What will Rs 500 amounts to in 10 years after its deposit in a bank which pays annual interest rate of 10% compounded annually?
CBSE | Class 11 | Exercise 9.3 | Maths | NCERT | Sequences and Series
What will Rs 500 amounts to in 10 years after its deposit in a bank which pays annual interest rate of 10% compounded annually?

Given,

The sum saved in the bank is  

    \[Rs\text{ }500.\]

Toward the finish of

    \[~first\text{ }year,\text{ }amount\]

    \[=\text{ }Rs\text{ }500\left( 1\text{ }+\text{ }1/10 \right)~=\text{ }Rs\text{ }500\text{ }\left( 1.1 \right)\]

Toward the finish of

    \[{{2}^{nd}}~year,\text{ }amount\text{ }=\text{ }Rs\text{ }500\text{ }\left( 1.1 \right)\text{ }\left( 1.1 \right)\]

Toward the finish of

    \[{{3}^{rd}}~year,\text{ }amount\text{ }=\text{ }Rs\text{ }500\text{ }\left( 1.1 \right)\text{ }\left( 1.1 \right)\text{ }\left( 1.1 \right)\]

and so on…..

Subsequently,

The sum toward the finish of

    \[10\text{ }years\text{ }=\text{ }Rs\text{ }500\text{ }\left( 1.1 \right)\text{ }\left( 1.1 \right)\text{ }\ldots \text{ }\left( 10\text{ }times \right)\]

    \[=\text{ }Rs\text{ }500{{\left( 1.1 \right)}^{10}}\]

i

More Material