Question

2 A man deposits Rs. 5000 at the time of his son’s admission in school, in an investment

that pays 8% compounded quarterly. How much will be in deposit, at the time of his son’s

admission in college after 12 years.​

Answer 1

Answer:

To solve this, we can create an equation for the value based on time. So if we let t be the nmbers of years that have passed, we can create a function f(t) for the value in the savings account.

We note that f(0) =5000. (We invest 5000 at time 0.) Next year, he will have 5% more than that. To find our total value at the end of the year, we multiply 5,000 * 1.05 = 5,250. f(1) = 5000(1.05)=5,250. At the end of year 2, we will have a 5% growth rate. In other words, f(2) = (1.05)* f(1). We can rewrite this as f(2)=5000(1.05)(1.05)=5000(1.05)2 . We can begin to see the proper equation is f(t)=5000(1.05)t. If we plug in t = 15, we will have our account balance at the end of 15 years. So, our answer is f(15)=5000(1.05)15=10,394.64.

Plz follow me and subscribe to my channel MEDICUS GNARITAS