Question

29. What sum will amount to Rs. 5525 at the
rate of 10% per annum compounded
yearly for 13 years?
A. Rs. 3200
B. Rs. 1600
C. Rs. 1900
D. Rs. 1200​

Answer 1

Answer:

I think the answer is 1900

Answer 2

Given:-

• Amount = 5525
• Rate = 10%
• Time = 13 years

To Find:-

• The sum.

Solution:-

We know,

$\sf{A = P\bigg(1+\dfrac{r}{100}\bigg)^n}$

Hence,

$\sf{5525 = P\bigg(1+\dfrac{10}{100}\bigg)^{13}}$

=> $\sf{5525 = P\bigg(1+\dfrac{1}{10}\bigg)^{13}}$

=> $\sf{5525 = P\bigg(\dfrac{10+1}{10}\bigg)^{13}}$

=> $\sf{5525 = P\bigg(\dfrac{11}{10}\bigg)^{13}}$

=> $\sf{5525\times\bigg(\dfrac{10}{11}\bigg)^{13} = P}$

=> $\sf{P = 1600.4}$

=> P = Rs.1600 [Approx]

Therefore the sum is Rs.1600 (Option B).

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Explore more!!

To find amount when the interest is compounded annually (or yearly) is:-

• $\sf{A = P\bigg(1+\dfrac{r}{100}\bigg)^n}$

To find amount when the interest is compounded half-yearly is:-

• $\sf{A = P\bigg(1+\dfrac{r}{200}\bigg)^{2n}}$

To find amount when the interest is compounded quarterly is:-

• $\sf{A = P\bigg(1+\dfrac{r}{100}\bigg)^{4n}}$

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