Question

A man saves Rs500 at the end of each year and lends the money at 10percent compound interest. How much will it become at the end of 4years

Answer 1

THANKS FOR THE QUESTION !

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ANS :

............... 2556.55 RS ...............

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GIVEN :

=> A MAN SAVES 500 RS AT EVERY END OF THE YR .....

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THE INTEREST TAKEN BY :

=> COMPOUND INTEREST

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TO FIND :

=> AFTER 4 YRS HIS SAVING

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AT THE 1ST YR :

PRINCIPAL :

=> 500RS

RATE OF INTEREST :

=> 10%

PERIOD :

=> 1 YR

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AMOUNT OF COMPOUND INTEREST :

=> P ( 1 + R / 100 ) ^ N

=> 500 ( 1 + 10 / 100 ) ^ 1

=> 500 ( 11 / 10 ) ^ 1

=> 500 * 11 / 10

=> 550 RS

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AFTER 2 YRS :

=> PRINCIPAL :

=> PREVIOUS AMOUNT + NEW 500 RS

=> 550 + 500

=> 1050 RS

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PERIOD :

=> 1 YR

RATE OF INTEREST :

=> 10 %

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AMOUNT OF COMPOUND INTEREST :

=> P ( 1 + R / 100 ) ^ N

=> 1050 ( 1 + 10 / 100 ) ^ 1

=> 1050 ( 11 / 10 ) ^ 1

=> 1050 * 11 / 10

=> 1155 RS

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AFTER 3 YR :

=> PRINCIPAL :

=> PREVIOUS AMOUNT + NEW 500 RS

=> 1155 RS + 500 RS

=> 1655 RS

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PERIOD :

=> 1 YR

RATE OF INTEREST :

=> 10%

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AMOUNT OF COMPOUND INTEREST :

=> P ( 1 + R / 100 ) ^ N

=> 1655 ( 1 + 10 / 100 ) ^ 1

=> 1655 * 11 / 10

=> 1,820.5 RS

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AFTER 4 YRS :

=> PRINCIPAL :

=> PREVIOUS AMOUNT + NEW 500 RS

=> 1820.5 RS + 500 RS

=> 2320.5 RS

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PERIOD :

=> 1 YR

RATE OF INTEREST :

=> 10 %

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AMOUNT OF COMPOUND INTEREST :

=> P ( 1 + R / 100 ) ^ N

=> 2320.5 ( 1 + 10 / 100 ) ^ 1

=> 2320.5 * 11 / 10

=> 2552.55 RS

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NOTE :

AT EACH TIME PRINCIPAL OF THE INTEREST IS CHANGING . THAT'S WHY IT IS NECESSARY TO CALCULATE THE AMOUNT OF COMPOUND INTEREST FOR EVERY PRINCIPLE SEPERATELY ......

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HOPE IT WILL HELP U ......

THANKS AGAIN .......

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Answer 2

Answer:

yes,the above answer is correct,

Step-by-step explanation:

the total answer will be Rs 2552.55