Question

Formula of compound interest. ​

Answer 1

Compound interest is calculated by multiplying the initial principal amount by one plus the annual interest rate raised to the number of compound periods minus one.

Formula → A = P(1+r/n)^nt

Answer 2

According to formula,

An = P( 1 +r/100)

Where A is total amount after n years, r is the rate. P is the amount initially

An =10, 000( 1 + 10/100)

=10,000( 1+0.1)"

=10,000(1.1)

An =10,000(1.1)

now, put n = 1 A1 =10, 000(1.1), put n =2, A2 =10,000(1.1)2

in the same way, A3 =10, 00(1.1)

you can see that A2/A1 = A3/A2

so, {An} is in Geometric progression.

now,

amount payable after 5years

A5 =10,000(1.1)^5

=16, 105.1 Rs