Question

f you invest £1000 on the first day of each year, and interest is paid at 5% on your balance at the end of each year, how much money do you have after 25 years? Nb-using ap or gp

Answer 1

Step-by-step explanation:

1. Let the total no. of years be n=25,
2. To calculate commom difference we use SI formula i.e. PRT/100
3. Then the SI will be the commom difference.
4. Therefore D=50
5. Using An = A+ (n-1)D ..
6. Substituting ..we get 2200/-

Answer 2

si=p×r×t/100=1000×5×25/100=1250

amount=p+si=1000+1250

=2250